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Gnoma [55]
3 years ago
11

A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and

an estimated useful life of 25 years. a. Determine the amount of annual depreciation by the straight-line method. $fill in the blank 1 b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method.
Business
1 answer:
timama [110]3 years ago
4 0

Answer:

a)  The amount of annual depreciation by straight-line method = Cost of the asset - Salvage Value / Number of years in useful life

= ($90,000 - $12,000) / 25 years

= $78,000 / 25 years

= $3,120

Thus, the amount of depreciation under straight-line method is $3,120.

b)  Depreciation for first year under double declining balance method = Cost of the asset / Number of years in useful life * 2

= $90,000 / 25 years * 2

= $7,200

Thus, the amount of depreciation for the first year under double declining balance method is $7,200.

Depreciation for second year under double declining balance method = Cost of the asset - First year depreciation / number of years in useful life * 2

= $90,000 - $7,200 / 25 years * 2

= $6,624

Thus, the amount of depreciation for the second year under double declining balance method is $6,624.

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the butler county tax assessor determines that the market value of greg wilsons home is $123000. the rate of assessment in butle
MrRa [10]
In this case, the assessed value is 28% from the market value. So, we need to get 28% from $123,000.

Expressed in figures, we have;
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The assessed value of Greg's home is $34,440, which is 28% of $123,000.
7 0
2 years ago
Ben owns an ice cream shop. Last quarter's income was $9,000; his cost of goods was $575, and his total expenses were $5,000. Wh
rewona [7]

Answer:

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Explanation:

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7 0
1 year ago
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation Account Title Cash Account
Art [367]

Answer and Explanation:

The preparation of the classified balance sheet is presented below:

<u>Valley Pump Corporation</u>

<u>Balance sheet</u>

<u>December 31, 2018</u>

Assets

Current assets

Cash                                    $30,000              

Marketable securities           $27,000

Account receivable             $61,000

Inventory                               $91,000

Prepaid expense                   $37,000

Investments

Marketable securities  $27,000

Land                               $25,000   $52,000

Property, plant & equipment

Land                           $105,000

Buildings                    $325,000

Equipment                  $85,000

Less:

Accumulated depreciation -$135,000

Net property, plant & equipment     $380,000

Intangibles

Copyright                                          $17,000

Total assets                                      $695,000

Liabilities & shareholder equity

Current liabilities

Account payable                        $70,000

Interest payable                          $15,000

Unearned revenue                     $25,000

Note payable                              $110,000

Current maturities                      $55,000

Total current liabilities                $275,000

Long term liabilities

Note payable                               $110,000

Shareholder equity

Common stock           $250,000

Retained earnings      $60,000

Total shareholder equity               $310,000

Total liabilities & shareholder equity $695,000

Working notes

Accumulated depreciation = building + equipment

= $105,000 + $60,000

= $695,000

The note payable is

= $55,000 × 2

= $110,000

6 0
2 years ago
Match the example with the business structure that makes sense for it. To match the items, click the example, and then click the
Kazeer [188]

Answer:

Doug and Vanessa- partnership

Esperanza- sole partnership

Robyn- c corporation

Cuba- s corporation or LLC

Ming- nonprofit corporation

I hope this helps someone!!

7 0
2 years ago
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