A piece of equipment is purchased for $18,000 and has a salvage value of $2,000. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $620 and installation costs are $590. The depreciation for year 2 is: a. $1,721. b. $200. c. $1,800. d. $1,921.
Q: 4 PTS
A: To solve this, we need to calculate the book value of the forklift and compare it to the sale price:…
Q: I am searching for a clear explanation of this financial accounting problem with valid methods.
A: Concept of Net Income:Net income is the final profit a company earns after subtracting all expenses,…
Q: What is the firm's PEG ratio? Accounting Question
A: Step 1: Definition of PEG RatioThe PEG ratio (Price/Earnings to Growth) is a stock valuation measure…
Q: calculate the ROE for smith maufacturing if they have ....? accounting
A: Step 1: Definition of ROE (Return on Equity)Return on Equity (ROE) is a financial performance metric…
Q: None
A: P/E Ratio = Share Price/Earning Per Share 22 = Share Price/3.75 Share Price = 22*3.75 Share Price =…
Q: general accounting
A: Step 1: Definition of Cost of EquipmentThe cost of equipment includes the total amount spent to…
Q: Can you explain the correct approach to solve this general accounting question?
A: Step 1: Definition of Days Sales of Inventory (DSI)The Days Sales of Inventory (DSI) is a financial…
Q: Please provide the accurate answer to this general accounting problem using appropriate methods.
A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…
Q: general accounting
A: To answer these questions, we use the following concepts:
Q: I need assistance with this financial accounting problem using appropriate calculation techniques.
A: Step 1: Definition of Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio measures how…
Q: ??!!
A: Explanation of Average Collection Period: The average collection period is the average number of…
Q: what is the amount of total assets at the end of the year ? accounting
A: Step 1: Definition of the Accounting EquationThe Accounting Equation is the foundation of…
Q: What is the annual depreciation expense
A: Provided Data:Cost of equipment = $63,000Salvage value = $6,000Useful life = 7 yearsMethod =…
Q: What is the value of the total assets?
A: Definition of Debt-Equity Ratio:The debt-equity ratio is a financial metric that compares a…
Q: Financial Accounting Question please answer
A: Step 1: Definition 1. Common-Size Percentage: A common-size percentage is a financial metric used to…
Q: I am looking for the correct answer to this Financial accounting question with appropriate…
A: Step 1: Definition1. Return on Equity (ROE): Return on Equity (ROE) is a measure of a firm's…
Q: 4 POINT
A: Explanation of Book Value:Book value refers to the net amount at which an asset is carried on the…
Q: what is the capital turnover? accounting
A: Step 1: Definition of Capital TurnoverCapital turnover is a financial efficiency ratio that shows…
Q: Can you explain the correct methodology to solve this general accounting problem?
A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…
Q: Solve this
A: Explanation of P/E Multiples Approach :The P/E multiples approach is a relative valuation method…
Q: Determine Total contra revenue and net sales for the company
A: Step 1: Definitions Concept of Contra Revenue Accounts:Contra revenue accounts are accounts used to…
Q: Solve it by using proper method
A: The first step in calculating the applied overhead is to determine the predetermined overhead rate.…
Q: Jonnathn Moving & Storage Co. paid $160,000 for 25% of the common stock of Sellers Co. Sellers…
A: Explanation of Equity Method:The equity method is an accounting technique used when an investor has…
Q: What is the ROA ?
A: To calculate the Return on Assets (ROA), we can use the following formula:ROA = Net Income / Total…
Q: Not use ai solution please and accounting question
A: Step 1: Definition of Adjusted Basis in a PartnershipThe adjusted basis of a partner's interest in a…
Q: Can you explain this financial accounting question using accurate calculation methods?
A: Step 1: Definition of RatioA ratio is a mathematical relationship between two numbers, showing how…
Q: Solution please
A: Step 1: Definition of Book Value per ShareBook Value per Share represents the amount of equity…
Q: Subject: Financial Accounting - Using the P/E multiples approach to valuation, what is the estimated…
A: Here's a clear explanation of how the P/E multiples approach works and how we used it to estimate…
Q: What is the debt to equity ratio ??
A: Solution:The debt-to-equity ratio is calculated by dividing total liabilities by total…
Q: On January 1, 2023, Lara Co. purchases a license for $150,000. It pays $50,000 upfront and agrees to…
A: Step 1: Definition of Acquisition CostAcquisition cost includes all costs necessary to obtain an…
Q: I need help with this solution and general accounting question
A: Step 1: Definition of Materials Quantity VarianceThe materials quantity variance measures the…
Q: Please explain the solution to this general accounting problem with accurate principles.
A: Step 1: Define Price-Earnings (P/E) RatioThe Price-Earnings (P/E) ratio is a financial metric used…
Q: Bella's has annual sales of $528,400, total debt of $112,000, total equity of $145,000, and a profit…
A: We want to calculate the Return on Assets (ROA) for Bella's business. What is ROA?ROA (Return on…
Q: You purchase lubricating oil in 55-gallon drums and consume an average of 642 drums per year.…
A: To determine the Economic Order Quantity (EOQ), we use the EOQ formula from inventory management.…
Q: I need guidance with this financial accounting problem using the right financial principles.
A: Step 1: Define Cash Flow to CreditorsCash flow to creditors refers to the net amount of cash a firm…
Q: I don't need ai answer general accounting question solution
A: Step 1: Definition of Adjusted Basis in a PartnershipA partner's adjusted basis in a partnership…
Q: I am searching for the correct answer to this Financial accounting problem with proper accounting…
A: Step 1: Definition 1. Cash Receipts: Cash Receipts refer to the total amount of cash a company…
Q: Help this correct answer this Accounting question
A: Step 1: Definition of Average Cost per UnitAverage cost per unit is the total manufacturing cost…
Q: Bob Disposition, Inc. has net working capital of $32,500, current assets of $59,000, equity of…
A: Explanation of Net Working Capital:Net working capital refers to the difference between a company's…
Q: ?
A: Concept of Revenue (Sales on Account):Revenue is the total amount earned from selling goods or…
Q: General Accounting Question please answer
A: We are given:Total Debt = $2,000Debt-to-Equity Ratio = 0.4 1: Find EquityThe debt-to-equity ratio is…
Q: Can you help me solve this general accounting question using the correct accounting procedures?
A: Step 1: Definition of Cash Collected from CustomersCash collected from customers refers to the…
Q: The financial statements of Shivam Manufacturing Company report net sales of $1277500 and accounts…
A: Explanation of Net Sales: Net sales represents the total revenue generated from selling products or…
Q: A business sold a forklift for $24,000 cash. The forklift costs $62,000 and had accumulated…
A: Explanation of Forklift (Asset): A forklift is a tangible asset recorded on a company's balance…
Q: Please provide problem with accounting question
A: Step 1: Definition of Ending Cash BalanceThe Ending Cash Balance is the amount of cash a company has…
Q: CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. The company's…
A: step: 1 The ability of a business to turn a profit and raise shareholder value is known as financial…
Q: I need help with this financial accounting question using the proper financial approach.
A: The controllable overhead spending variance (the variable overhead spending variance) measures the…
Q: Can you please solve this accounting question
A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is a measure of the cash…
Q: I want the correct answer with accounting question
A: To calculate the goodwill resulting from the acquisition, use the following formula: Goodwill =…
Q: Please provide the correct answer to this general accounting problem using accurate calculations.
A: Step 1: Definition of Beginning Work in Process (WIP) InventoryBeginning work in process inventory…
What is the correct option
Step by step
Solved in 2 steps
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
- A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
- IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
