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kolezko [41]
3 years ago
11

Tops Co. purchases equipment for $12,000 and has been using straight-line depreciation, estimating a 5-year life and $500 salvag

e value. At the beginning of the third year, Tops decides to use the equipment for a total of 6-years with no salvage value. Compute the revised depreciation for the third year. Multiple choice question. $2,875 $1,850 $1,250 $2,375
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

Annual depreciation= $1,850

Explanation:

Giving the following formula:

Purchase price= $12,000

Salvage value= $500

Useful life= 5 years

<u>First, we need to calculate the annual depreciation and accumulated depreciation:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (12,000 - 500) / 5

Annual depreciation= 2,300

Accumulated depreciation (2 years)= 2,300*1= 4,600

<u>Now, we can determine the annual depreciation with a 4 more years of useful life:</u>

Book value= 12,000 - 4,600= 7,400

useful life= 4 years more

Annual depreciation= 7,400/4

Annual depreciation= $1,850

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Fantom [35]

It should be noted that the study of how resources are distributed for production of goods and services within a social system is called Economics.

<h3>What is Economics?</h3>

Economics  can be regarded as a social science which focus on the study of production as well as distribution, and consumption of goods as well as services.

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4 0
2 years ago
An investor sold 100 shares of ran common stock short at $50 per share. the ran is now at $38. the investor is still bearish on
Anni [7]

If the investor is my client, i will advise him to enter a buy stop order at $40.

<h3>What is the buy stop order?</h3>

In the share market, these are protective tool that are mainly for short sellers.

Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.

Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.

However, because the investor is short term person, the only protective order would be a buy and not a sell.

Therefore, i will advise him to enter a buy stop order at $40

Read more about buy stop order

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7 0
2 years ago
Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbro
Virty [35]

Answer:

Scarbrough will receive and record cash of $538,685

The journal entry to record this transaction would be:

                             Debit        Credit  

Cash                 $2,900,300  

Interest Expense $89,700  

Notes Payable                 $2,990,000

Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000

Explanation:

In order to calculate the amount Scarbrough will receive and record cash we would have to make the following calculation:

Scarbrough will receive and record cash=Receivables-Amount of the hold back-Withheld as fee income-Less: Withheld as interest expense

Receivables= $600,000  

Amount of the hold back=$600,000 x 5%=$30,000  

Withheld as fee income=$600,000 x 3%=$18,000  

Withheld as interest expense=$600,000 × 15% × 54/365=$13,315  

Therefore, Scarbrough will receive and record cash=$600,000- $30,000-$18,000-$13,315=$538,685

Scarbrough will receive and record cash of $538,685

According to the given data to journal entry to record this transaction would be the following:

 

                              Debit        Credit  

Cash                 $2,900,300  

Interest Expense $89,700  

Notes Payable                 $2,990,000

Interest Expense=$2,990,000 x 3%=$89,700

5 0
3 years ago
Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already h
bija089 [108]

Answer:

$5,456

Explanation:

A relevant cost can be defined as the cost that are said to be in form of a future cash cost that is relevant and important to a particular decision.

The relevant cost:

Current market cost 880 liters × Current market $6.20 per liter

= $5,456.

Therefore the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order will be $5,456

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kvv77 [185]

Explanation:

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These these factors will help Mr. Jones to understand that fraud will be prevented and detected.

3 0
3 years ago
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