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luda_lava [24]
2 years ago
15

The Elmo Company purchased equipment on January 1, Year 1 at a cost of $26,000. The equipment was estimated to last for 8 years

and have a salvage value of $2,000. At the end of Year 5, it was determined that the total useful life of the equipment was really 11 years, and the salvage value was expected to remain unchanged. The firm uses the straight-line method of depreciation.
a. What amount of depreciation was recorded for the equipment in year 1?
b. What was the amount of the depreciation expense recorded in year 6?
Business
1 answer:
Grace [21]2 years ago
3 0

Answer:

The Elmo Company

a. The amount of the depreciation expense recorded in year 1 = $3,000

b. The amount of the depreciation expense recorded in year 6 = $1,500

Explanation:

a) Data and Calculations:

Cost of equipment on January 1, Year 1 = $26,000

Estimated useful life = 8 years

Salvage value = $2,000

Depreciable amount = $24,000 ($26,000 - 2,000)

Annual depreciation expense = $3,000 ($24,000/8)

Accumulated depreciation after 5 years = $15,000 ($3,000 * 5)

Net book value after 5 years = $11,000

Sixth year appraisals:

Remaining useful life = 6 years

Salvage value = unchanged at $2,000

Depreciable value = $9,000 ($11,000 - 2,000)

Annual depreciation expense = $1,500 ($9,000/6)

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Answer:

The cost of goods sold that would be reported on the incoem statement is $70000

Explanation:

The cost of goods sold is the value or cost of the inventory that a business sells to its customers. The cost of goods sold for the year can be calculated using the following formula.

Cost of Goods Sold (COGS) = Opening Inventory + Purchases for the year - Closing Inventory

Thus, Elm Corporation has a cost of goods sold to report on this year's income statement of:

COGS = 32000 + 57000 - 19000 = $70000

4 0
3 years ago
Which statement WOULD NOT be true about the value of career research?
Rudiy27

Answer: There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree

Explanation:

When making a career research, it's vital to consider the opinion of the people that already have that career as their occupation as they already have the required knowledge concerning the job.

Also, one should consider the availability of job, the skills, abilities that one has and the future prospects of the job.

Furthermore, we all have something we value about careers and our opinions regarding that might be different.

Therefore, the correct option is "There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree". This is false.

7 0
3 years ago
The purpose of the ________ of performance appraisal is to keep managers from being excessively lenient and having a disproporti
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Answer: forced distribution method

Explanation:

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8 0
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Your phone service provider offers a plan that is classified as a mixed cost. The cost per month is $50 flat rate for the first
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Answer:

D

Explanation:

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3 years ago
Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as
tensa zangetsu [6.8K]

Answer:

Department M

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Department A

Manufacturing overhead rate = $400,000/800,000 hrs = $0.5/hr

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Total manufacturing cost allocated = $30,000

Explanation:

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