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blagie [28]
3 years ago
5

Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $287,000, has an estimated useful life of 8 years and an es

timated residual value of $37,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Business
1 answer:
aliina [53]3 years ago
4 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Purchasing cost= $287,000

Useful life= 8 years

Estimated residual value= $37,400

To calculate the annual depreciation under the straight-line method, we need to use the following formula:

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

Annual depreciation= (287,000 - 37,400) / 8

Annual depreciation= $31,200

<u>Depreciation remains constant during the useful life of the asset.</u>

We can calculate exactly the annual depreciation for the first year.

Year 1= (31,200/365)*360= $30,772.60

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As the question is not complete, the complete question is found online and is attached herewith.

Let the number of product 1 to be produced is X, that of product 2 is Y and product 3 is Z

so  the maximizing function is the profit function which is given as

P=90X+120Y+150Z

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2X+2Y+Z\leq 400

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3X+4Y+6Z\leq 240

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As from the given table product 1 uses 4 machine hours of machine 3, product 2 uses 6 machine hours of machine 3 and product 3 uses 5 hour of machine 3 so

4X+6Y+5Z\leq 320

Now as the machine 1 is used as 2X+2Y+Z in a week and the week is of 40 hours so the number of machines to be used are given as

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\dfrac{4X+6Y+5Z}{40}\leq 8

\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19

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