Rebe is looking over two sets of calculations done by a new employee. Set A presents the original cost of a vehicle to be $60,000 and the depreciable cost to be $30,000. Set B presents the depreciable cost of a machine to be $100,000 and the original cost of the machine to be $80,000. Are these calculations correct? O No, Set A is incorrect as the depreciable cost cannot possibly be lower than the original cost of the asset. O Yes, both Set A and Set B are likely correct, but to know for sure the salvage value of the assets would also need to be known. O Yes, both Set A and Set B are likely correct, but to know for sure the estimated useful life would also need to be known. O No, Set B is incorrect as the depreciable cost cannot possibly be higher than the original cost of the asset.

Rebe is looking over two sets of calculations done by a new employee. Set A presents the original cost of a vehicle to be $60,000 and the depreciable cost to be $30,000. Set B presents the depreciable cost of a machine to be $100,000 and the original cost of the machine to be $80,000. Are these calculations correct? O No, Set A is incorrect as the depreciable cost cannot possibly be lower than the original cost of the asset. O Yes, both Set A and Set B are likely correct, but to know for sure the salvage value of the assets would also need to be known. O Yes, both Set A and Set B are likely correct, but to know for sure the estimated useful life would also need to be known. O No, Set B is incorrect as the depreciable cost cannot possibly be higher than the original cost of the asset.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Identify the following costs that could be capitalized on the firm’s balance sheet (included in property, plant, and equipment).a. New windshield wiper blades on the company’s truckb. New sidewalks inside the firm’s factoryc. Freight expenses for new equipment installed in the factoryd. Installation costs for the new equipmente. Realtor’s fees associated with factory purchasef. Minor engine repair on the truckg. Engine replacement on the truckh. Razing or demolishing a building on newly acquired landi. Design costs for a new buildingg. Value-added taxk. Construction expenses associated with building a garagel. Costs required to bring the equipment to its intended locationm. Administration and other general overhead costsn. Salaries of HR departmento. Wasted materials, labour and other resources p. idle capacity
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Several expenditures are listed below. Indicate whether or not each expenditure would be included in the cost of acquisition for each item below. The answer box provides two options, Yes (if the expenditure would be included ) or No, (if the expenditure would not be included.) Cost testing materials and labor in testing a purchased machine Yes before use Compensation for injury to No construction worker Cost of overhaul to a used Yes machine purchased before initial use Cost of tearing down a building Yes on newly acquired land Repairs to a new machine Yes damaged while moving it into > > > > >
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
XYZ Ltd. is a manufacturing company that produces specialized machinery. The company has been in business for the last 10 years and has always used the straight-line method of depreciation to calculate the depreciation expense for its machinery. However, the company's financial controller has recently proposed that they switch to the double- declining balance method instead. The financial controller argues that this method would result in a more accurate depreciation expense calculation and better reflect the actual usage of the machinery over time. Questions: 1. What is the straight-line method of depreciation? 2. What is the double-declining balance method of depreciation? 3. What are the advantages and disadvantages of using the straight-line method? 4. What are the advantages and disadvantages of using the double-declining balance method? 5. Should XYZ Ltd. switch to the double-declining balance method of depreciation? Why or why not?
Prepare the following journal entries. (a) The $3,700 cost of repairing a vehicle. The repair is not expected to increase the operating efficiency of the vehicle. (b) The $6,500 cost of a major engine overhaul on an emergency generator. The overhaul is expected to increase the operating efficiency of the generator. (c) The $4,000 closing costs associated with the acquisition of land. (d) A $150 charge for transportation expenses on new equipment purchased.
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answer this with the correct accounts and numbers Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.