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sweet [91]
3 years ago
10

During the current year, the company purchased equipment for $212,000 on October 1. It is estimated the equipment will have a us

eful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During the current year, the company uses the equipment for 525 hours and the equipment produced 1,000 unites. The company uses December 31 as its fiscal year end.
Part 1: For the current year, compute depreciation expense using the straight-line method.
Part 2: For the current year, compute depreciation expense using the activity method (units of output).
Part 3: For the current year, compute depreciation expense using the activity method (working hours).
Business
1 answer:
qwelly [4]3 years ago
7 0

Answer:

$6250

$5000

$5250

Explanation:

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

($212,000 - $12,000) / 8 = $25,000

The machine was used for only 3 months in the fiscal year. Thus, the depreciation expense = $25,000 x (3/12) = $6250

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)

(1000 / 40,000) x ($212,000 - $12,000) = $5000

Activity method based on hours worked = (hours worked that year / total hours of the machine) x  (Cost of asset - Salvage value)

($212,000 - $12,000) x (525 / 20,0000)  = $5250

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Summarize red lines and reverse red lining and why they are unethical lending practices
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Answer:

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If the new business will last only for the next five years, so she can take the profits from the new business for five times sta
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Based on the profits of the new business, the size of the value of the new business would be $282,860.

<h3>What would be the value of the new business?</h3>

The new business is said to make a profit of $100,000 every year and the interest rate is 3%.

The value of the new business is therefore:
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