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Andrei [34K]
3 years ago
10

First, we will start with annual depreciation. We will always use straight-line depreciation in this course Consider a firm that

purchased an equipment for $165,891 and incurred an additional $42,172 for shipping and installation. What will be the annual depreciation expense if the equipment is expected to last 13 years and have a salvage value of $4,018 (using straight-line depreciation)
Business
1 answer:
NARA [144]3 years ago
6 0

Answer:

Annual Depreciation expense = $15695.7692  rounded off to  $15695.77

Explanation:

We first need to calculate the cost of the equipment. The cost at which an equipment or asset should be recorded should include all the costs incurred to bring the asset into the place and condition necessary for its use as intended by the management. Thus the cost of the equipment will be,

Cost = 165891 + 42172

Cost = $208063

Now we can calculate the depreciation expense per year based on the straight line depreciation method using the following formula,

Annual Depreciation expense = (Cost - Salvage Value) / Estimated useful life

Annual Depreciation expense = (208063 - 4018) / 13

Annual Depreciation expense = $15695.7692  rounded off to  $15695.77

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Greeley [361]

Answer:

The incremental cost is $198,000

Explanation:

Given;

Current cost per unit to manufacture = 66,000 units

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Direct labor= $9.00

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Total cost per unit = $24.00

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7 0
3 years ago
"A new issue corporate bond with dated date of June 1st is bought from the underwriter with settlement occurring on Monday, June
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Answer:

27 days

Explanation:

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4 0
3 years ago
When a u.s. airplane manufacturer sells its airplanes to business executives in germany without using intermediaries, it is refe
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<span>When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as? Direct exporting. Even though the airplanes were sold without using intermediaries making them a direct export there are still processes that have to be followed within the exchange. A benefit to direct exporting allows the the costs and confusions using a middle man to create, to be irrelevant as there is no middle man just the two companies/countries doing an exchange. </span>
7 0
3 years ago
A customer in the 28% tax bracket has $6,000 of capital gains and $9,000 of capital losses. How much unused loss is carried forw
rusak2 [61]

Answer:

Nill

Explanation:

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7 0
2 years ago
Why are short sentences and short paragraphs appropriate for business communication?
motikmotik

Answer:

Objs. 4 For business communications it is essential to express ideas and facts eloquently. The shorter the sentences and paragraph are, the brief the letter, memo or notice. This will save the reader's and writer's time.

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3 years ago
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