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Answer:
In the first year 2019, the depreciation expense would be $20,000.
From 2020 to 2023, the depreciation expense would be $40,000 and then $20,000 in 2024.
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
Annual depreciation
= $200,000/5
= $40,000
In the first year 2019, the depreciation expense would be
= 1/2 * $40,000
= $20,000
From 2020 to 2023, the depreciation expense would be $40,000 and then $20,000 in 2024
Answer:
Total equivalent units= 17,250 units
Explanation:
<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked. </em>
Equivalent units = Degree of completion× units of inventory
Item units Equivalent unit
Completed 15,000 100%× 15,000 = 15,000
Closing inventory 3,000 75%× 3,000 = <u>2,250
</u>
Total equivalent units <u> 17,250</u>
Total equivalent units= 17,250 units
<span>Sole Proprietorship - These businesses are possessed by one person.
Sole proprietorships possess all the assets and incomes.
Partnerships - two or more people share possession of a single business
there is a legal agreement that profits will be shared and capital must be shared by each partner.
Corporations – these are chartered by the state, taxed, and the possessors of a corporation are its stockholders.</span>
