What is application software used for?

Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the

Wittaler [7]

Answer:

The depreciation charge in 2021 is $ 164,000.00

Explanation:

Annual depreciation charge=cost-salvage value/useful life

cost is $610,000

salvage value is $61,000

useful life is 9 years

Annual depreciation charge=($610,000-$61,000)/9=$61000

The depreciation of charge of $61000 is applicable to years 2018 ,2019 and 2020 respectively.

The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.

revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=

$164,000.00

5 0

3 years ago

Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce

PilotLPTM [1.2K]

Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

Cost of equity (ke) = 24% = 0.24

Po = Do(1 + g)

Ke - g

Po = $1.35(1 + 0.11)

0.24 - 0.11

Po = $1.4985

0.13

Po = $11.53

Explanation:

The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.

4 0

3 years ago

The direct write-off method records bad debt expense only when an account becomes uncollectible, which is not always in the same

Alchen [17]

The direct write-off method violates the matching principal, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).

5 0

3 years ago

Cheyenne Corp. purchased a piece of equipment for $58,800. It estimated a 9-year life and $3,400 salvage value. At the end of ye

bogdanovich [222]

Answer:

the revised depreciation is $ 3,753

Explanation:

Straight Line Method of Depreciation charges the same amount of depreciation over the useful life of the asset.

Depreciation Charge (Straight line) = (Cost - Salvage Value) / Useful life

Year 1

Depreciation Charge = ( $58,800 - $3,400) / 9 years

= $6,156

Year 2

Depreciation Charge = $6,156

Year 3

Make the adjustment as if the adjustment happened at the beginning of the year

Make the following changes

(1) Adjast the Depreciable Amount (numerator)

(2) Adjast the Useful life (denominator) to 11 years

Depreciation Charge = (Cost - Previous Depreciation Charges - New Residual Value) / Revised Number of Useful life

Depreciation Charge = ($58,800 - $6,156 - $6,156 - $5,200)/ 11 years

= $ 41,288/ 11 years

= $ 3,753

5 0

3 years ago

Match each of the following scenarios with the accounting principle or accounting assumption that it best illustrates.a. Several

Orlov [11]

Answer:

Key S - Scenario

A - Accounting Principle or Assumption

S

Several years after Thomas Company purchased new office equipment, the company’s accounting records still show the original purchase price.

A

Historical cost principle

S

The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the company’s assets.

A

Business entity assumption

S

Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses.

A

Going concern assumption

S

Thomas records expenses incurred to produce the sales for the month.

A

Expense recognition principle

S

GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customer’s payment is recorded.

A

Revenue recognition principle

S

Thomas Company provides earnings information to investors at the end of every quarter.

A

Time period assumption

S

The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm.

A

Monetary unit assumption

Explanation:

5 0

3 years ago