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mafiozo [28]
3 years ago
7

Kansas Enterprises purchased equipment for $60,000 on January 1, 2012. The equipment is expected to have a five-year life, with

a residual value of $5,000 at the end of five years.Using the straight-line method, depreciation expense for 2013 and the book value at December 31, 2013 would be:a. $12,000 and $36,000.b. $12,000 and $31,000.c. $11,000 and $33,000.d. $11,000 and $38,000.
Business
1 answer:
Rudiy273 years ago
5 0

Answer:

(D) Annual depreciation will be $11000

And book value will be $38000

Explanation:

We have given Kansas purchased equipment for $60000

So Acquisition cost = $60000

Residual value = $5000

We know that annual depreciation is given by

Life time = 5 years

Annual depreciation expense =\frac{Acquisition\ cost-residual\ value}{life\ time}=\frac{$60000-$5000}{5}=$11000

Depreciation expense is the same every year under straight-line. Therefore, in 2013 the depreciation expense is $11,000

Book value is given by

Book value =  Acquisition Cost - Accumulated Depreciation

= 60000-2\times (110000)=$38000

The Book Value of the asset is therefore $38,000 after 2 years of service

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5 0
2 years ago
Jamison's gross tax liability is $7,255. Jamison had $2,450 of available credits and he had $4,050 of taxes withheld by his empl
STALIN [3.7K]

Answer:

$755 taxes due  

Explanation:

Data provided in the question

Gross tax liability = $7,255

Credits available = $2,450

Taxes withheld by his employer = $4,050

So by considering the above information, the Jamison taxes due with his tax return is

= Gross tax liability - credits available - taxes withheld by his employer

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6 0
3 years ago
Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000
ivanzaharov [21]

Answer:

$0.20

Explanation:

For computing the change in future price, first we have to determine the loss which is shown below:

Loss = Initial Margin - Maintenance Margin

        = $4,000 - $3,000

        = $1,000

Now the change in future price would be

= Loss ÷ size of the contract

= $1,000 ÷ 5,000 ounces

= $0.20

The future price is increased by $0.20

And, if the margin call is not meet than the broker will stop at best price so that he cannot suffer more loss

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3 years ago
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8 0
3 years ago
Elin owes floyd $10,000. floyd assigns the claim to gary. gary does not notify elin of the assignment. later, floyd assigns the
kykrilka [37]

Answer:A. Priority to payment in all states.

Explanation: "Assignment" is a legal or Business term used to describe the transfer of ownership of a particular asset or liability from a one person(assignor) to an another person(an assignee). THIS IS USED IN DIFFERENT FORMS IN BUSINESS, it CAN BE IN THE TRANSFER OF REAL ESTATES TO SHARES ETC.

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Priority to payment is to Holli in all the States.

8 0
3 years ago
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