Crestline Corporation purchased machinery on October 1 for $85,000 with a residual value of $10,000. The estimated useful life is 6 years, and the company uses the straight-line depreciation method. What is the depreciation expense for the year ending December 31?
Q: Variable cost:6400000, fixed cost:3200000
A: Step 1: Formula Contribution margin per unit = (Sales - Variable costs)/Units sold Step 2:…
Q: Subject: Financial accounting
A: Explanation of Market-to-Book Ratio:The Market-to-Book Ratio is a financial metric that compares the…
Q: Hy expert give me correct answer
A: Step 1: Definition of Absorption CostingAbsorption costing assigns all manufacturing costs,…
Q: Compute the target selling price per unit under absorption costing .
A: Explanation of Absorption Costing:Absorption costing is a costing method where all manufacturing…
Q: Financial Accounting Question
A: To calculate the total combined direct labor cost for January and February, follow these steps: 1.…
Q: Overhead incurred by sunrise manufacturing company in September?
A: Explanation of Cost of Goods Manufactured (COGM): This represents the total cost of goods that were…
Q: Vogel Corporation's cost of goods manufactured last month was $147,000. The beginning finished goods…
A: To calculate the adjusted cost of goods sold, follow these steps: Calculate the unadjusted cost of…
Q: Solve this?
A: Explanation of Variable Costs: Variable costs are expenses that change in proportion to production…
Q: Ans please
A: Step 1: Definition of the Lower of Cost or Net Realizable Value (LCNRV) RuleThe LCNRV rule requires…
Q: General Accounting
A: Step 1: Define Actual Return on Plan AssetsThe actual return on plan assets reflects the income…
Q: What is the direct labor time variance?
A: Explanation of Direct Labor Time Variance: Direct labor time variance is the difference between…
Q: None
A: Step 1: Use the Cash flow from assets formulaStep 2: Rearrange for Cash flow to creditorsStep 3:…
Q: Financial accounting question
A: Step 1: Formula Price-earnings ratio = Market price per share/Earnings per share Step 2:…
Q: Abc
A: The Cash Conversion Cycle (CCC) tells us how long it takes for a company to turn its investments in…
Q: Please correct answer with accounting question
A: Step 1: Define Financial RatioProfit margin is the percentage of the net income of the total sales.…
Q: None
A: We use the relative fair value method to allocate the purchase price of $625,000 among the acquired…
Q: Compute the correct cost of goods sold for 2022.
A: Explanation of Beginning Inventory:Beginning inventory refers to the value of a company's inventory…
Q: Answer this general Accounting Question
A: Concept of Fixed Costs: Fixed costs are expenses that do not change with production levels within a…
Q: None
A: To calculate the debt-equity ratio, we can use the DuPont identity for Return on Equity (ROE):…
Q: Provide answer
A: Given:Direct material = $6,300Direct labor hours= 40Direct labor rate = $25Total board feet =…
Q: Silver Creek Technologies has the following financial information: please answer the financial…
A: Step 1: Analysis of information givenTotal asset turnover = 1.8Net profit margin = 5%Debt ratio =…
Q: Cost of goods sold on the schedule of cost of goods sold?
A: Explanation of Cost of Goods Manufactured (COGM): This represents the total cost of producing…
Q: 5 PTS
A: **(a) All data holds equal importance**- **Why this is incorrect**: - Data collection involves…
Q: General Accounting Question
A: Step 1: Define Projected Benefit Obligation (PBO)The Projected Benefit Obligation (PBO) is the…
Q: Why does measurement attribute selection affect reporting quality? a) Standards fit everything b)…
A: Standards fit everything: This suggests a "one-size-fits-all" approach, which is generally not…
Q: Get correct answer general accounting
A: Total Fair Value: $150,000 + $400,000 + $200,000 = $750,000Land:Allocation Percentage=Fair Value of…
Q: Need help
A: Detailed explanation:Given data:Direct Labor $250,000Direct Materials $210,000Manufacturing Overhead…
Q: 2.7.12 - Sai Company manufactures and sells a single product. The company's total sales are $150,000…
A: To find the number of units sold, we need to use the following information: Total sales =…
Q: Can you help me with accounting questions
A: The maximum allowable deduction under Section 179 in 2014 was 500,000, with a 2,000,000 phase-out…
Q: Accounting sum 6 pts
A: Direct Labor Cost Variance = (Actual Hours × Actual Rate) - (Standard Hours Allowed × Standard Rate)…
Q: If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $55,…
A: Explanation of Contribution Margin Per Unit: Contribution margin per unit is the difference between…
Q: ?!
A: Explanation of Straight-Line Depreciation:Straight-line depreciation is a method of allocating the…
Q: Pluto company beginning and ending inventory levels for January
A: Explanation of Units to Be Manufactured:The Units to Be Manufactured represent the total number of…
Q: WW Office Solutions implemented a new supply requisition system. Departments must submit requests by…
A: We want to find out the compliance rate, which means the percentage of requisitions that met both…
Q: Which criterion establishes functional currency in multi-national operations? Country of…
A: The question concerns the functional currency of a multinational entity, which refers to the…
Q: Correct Answer
A: Concept of Fair ValueFair value refers to the price that would be received to sell an asset or paid…
Q: Financial Accounting Question please answer
A: Step 1: Define Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) refers to the…
Q: Please given answer
A: Step 1: Definition of Fixed Manufacturing Overhead in Absorption CostingIn absorption costing, all…
Q: ??
A: When evaluating a system, product, or procedure, there are two main approaches:Process-Based…
Q: Seaside Manufacturing Inc. estimated its manufacturing overhead costs for 2023 to be $450,000, based…
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is an estimated rate used…
Q: Balance sheet for inventory? General accounting
A: Step 1: Net realizable value Net realizable value = Selling price - Disposal costNet realizable…
Q: Hello tutor solve this question accounting
A: To calculate the Patent Amortization Expense, follow these steps: Determine the cost of the…
Q: General accounting
A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the ownership interest in…
Q: Provide answer
A: To find Glenboro Fire Prevention Corp.'s debt-equity ratio, we can use the DuPont identity, which…
Q: Greenfield Corp., which owes Oakwood Inc. $750,000 in notes payable with accrued interest of…
A: Step 1:Calculate the carrying amount as follows:Carrying amount = Original cost - Accumulated…
Q: Help
A: The question pertains to the purpose of structural dependency analysis in business and finance.…
Q: Ans plz
A: The debt-to-equity ratio is a financial metric that compares total debt to net worth (equity). It…
Q: Financial Accounting: How does benefit realization tracking enhance performance measures? 1) Value…
A: Concept of Benefit Realization Tracking: This involves the systematic monitoring and evaluation of…
Q: The information below for Sundar Company
A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM) refers to the…
Q: Using the following information, what is the amount of net sales on these financial accounting…
A: Step 1: Define Net SalesNet Sales represent the actual revenue a company generates from sales after…
What is the
Step by step
Solved in 2 steps
- Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
- 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?On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
- On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The estimated residual value is 25,000. Susquehanna estimates that the asset will be used for 10 years and uses straight-line depreciation. Calculate the depreciation expense per year.Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
- Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000
