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Nitella [24]
3 years ago
7

Sheridan Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo

yee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Year Straight-line Sum-of-the-years'-digits Double-declining-balance
1 $11,880 $19,800 $26,400
2 $11,880 $15,840 $15,840
3 $11,880 $11,880 $9,504
4 $11,880 $7,920 $5,702
5 $11,880 $3,960 $1,954
Total $59,400 $59,400 $59,400
(a) What is the cost of the asset being depreciated?
(b) What amount, if any was used in the depreciation calculations for the salvage value for this asset?
(c) Which method will produce the highest charge to income in Year 1?
(d) Which method will produce the highest charge to income in Year 4?
(e) Which method will produce the highest book value for the asset at the end of the Year 3?
(f) If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
Business
1 answer:
Brrunno [24]3 years ago
4 0
Hi! I don’t know what any of this means but I just wanted to tell you that I hope you have an amazing day and god/allah/etc bless you :)
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The structural engineering design section within the engineering department of a regional electrical utility corporation has dev
Vinil7 [7]

Answer:

102.99 hours needed

Explanation:

Zu = K (U^n)

Zu= estimation of tower which is for 8

U= number of tower which is 8

n= log0.94/log2

Zu= 124(8^{log0.94/log2} )= 102.99hours

6 0
3 years ago
Hitzu Co. sold a copier (that costs $7,500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1
worty [1.4K]

Answer:

1.Warranty expense

$ 750

2.Estimated warranty liability

$ 750

3. Warranty Expense $ 0

4.

Estimated warranty liability

$ 626

5. Hitzu Co. Journal entries

Aug 16

Dr Cash 15,000

Cr Sales 15,000

Aug 16

Dr Cost of goods sold 7500

Cr Merchandise inventory 7500

Dec 31

Dr Warranty expense 750

Cr Estimated Warranty liability 750

Dec 31

Dr Estimated warranty liability 124

Cr Repair part inventory 124

Explanation:

1.

Warranty expense 5% of dollar sales

= 5% × $15,000 = $750.

2.

The December 31, 2017, balance of the liability equals the expense because no repairs are provided in 2017. Therefore, the ending balance of the Estimated Warranty Liability account is $750.

3.

The company should report no additional warranty expense in 2018 for this copier.

4.

The December 31, 2018, balance of the Estimated Warranty Liability account equals the 2016 beginning balance minus the costs incurred in 2018to repair the copier:

Beginning 2016 balance $ 750

Less parts cost (124)

Ending 2018 balance $626

4 0
3 years ago
A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes,
umka2103 [35]

Answer:

2.69 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

To derive cash flows from net income, add depreciation to the net income.

Straight line depreciation = (Cost of asset - Salvage value) / useful life

$150,000 / 5 = $30,000

The depreciation expense each year would be $30,000.

Cash flow in year 1 = $30,000 + $10,000 = $40,000

Cash flow in year 2 = $30,000 + $25,000 = $55,000

Cash flow in year 3 = $30,000 + $50,000 = $80,000

Cash flow in year 4 = $30,000 + $37,500 = $67,500

Cash flow in year 5 = $30,000 + $100,000 = $130,000

In the first year, -150,000 + $40,000 = $-110,000 is recovered

In the second year, $-110,000 + $55,000 = $-55,000 is recovered

In the third year, $-55,000 + $80,000 = $25,000 is recovered.

The cash payback period is 2 years + $-55,000 / $80,000 = 2.69 years

I hope my answer helps you

6 0
3 years ago
Agency with both the power and the responsibility for setting accounting and reporting standards for publicly traded companies i
Lelechka [254]

Answer and explanation:

The Securities and Exchange Commission or SEC is an independent agency of the United States government. The mission of the SEC is to enforce securities laws as passed by Congress. These laws promote fair, orderly and efficient securities markets, protect investors from abuses, and help maintain a well-functioning economy. The SEC is also responsible for <em>setting accounting and reporting standards for companies whose securities are publicly traded</em>.

4 0
3 years ago
Which of these statements is correct?
Furkat [3]

Hi there! Hopefully this helps!

------------------------------------------------------------------------------------------------------------

<em>The answer is</em><u><em> D</em></u><em>.</em>

<em />

<em />

<em>"Which of these statements is correct?"; </em><em><u>Scientific ideas are </u></em><em><u>subjected to repeated testing.</u></em>

7 0
3 years ago
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