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Lapatulllka [165]
3 years ago
11

Use the following information to answer the next two questions. Downey Company bought a delivery truck for $62,000 on January 1,

2015. They installed a rear hydraulic lift for $8,000 and paid sales tax of $3,000. In addition, Downey paid $2,400 for a one-year insurance policy. They estimate the useful life of the truck to be 10 years and its residual value to be $8,000. If Downey uses the straight-line method of depreciation, what is the depreciation expense for 2016 and book value at the end of 2016
Business
1 answer:
natita [175]3 years ago
7 0

Answer and Explanation:

The computation of the depreciation expense and book value at the end of 2016 is shown below:

But before that first determine the cost of the asset which is

Cost of the asset is

= Purchase price + rear hydraulic  lift + sales tax

= $62,000 + $8,000 + $3,000

= $73,000

Now the depreciation expense is

= ($73,000 - $8,000) ÷ (10 years)

= $6,500

ANd, the book value is

= $73,000 - $6,500 × 2

= $60,000

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1 year ago
Parking spaces in multiunit buildings, water rights, and similar things of value that convey with property are classified as
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<h3>What Is Appurtenance?</h3>

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Before defining appurtenance,

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In real estate, real property is defined as immovable or fixed property, any property attached to the land and even the land itself. This also includes permanent fixtures within the property, that are not personal property and easily moved.

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2 years ago
Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand.
andrew-mc [135]

Answer:

The firm will sell 600 units at $20

Explanation:

Giving the following information:

d = annual demand for a product in units

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3 years ago
The slogan of Nature's Source Products is "Loving the Planet." This is more than just an advertising message. The company hires
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3 years ago
Sheridan Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life (in years) Salvage Value Machi
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Answer:

Jan 1

Dr Accumulated depreciation equipment 64,000

Cr Equipment 64,000

June 30

Dr Depreciation expenses 3,000

Cr Accumulated depreciation equipment 3,000

June 30

Dr Cash 11,300

Dr Accumulated depreciation equipment

37,300

Cr Gain on disposal 25,600

Cr Equipment 23,000

Dec 31

Dr Depreciation expenses 3,300

Cr Accumulated depreciation truck 3,300

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Cr Equipment 23,400

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Sheridan Company Journal entries

Jan 1

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Cr Equipment 64,000

June 30

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Cr Accumulated depreciation equipment 3,000

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Cr Equipment 23,400

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