A dairy storage tank acquired at the beginning of the fiscal year at a cost of $98,500
Question:
(a) The amount of annual depreciation by the straight-line method and
(b) The amount of depreciation for the first and second years computed by the declining-balance method (at twice the straight-line rate).
Step by Step Answer:
a 10 of 98500 7500 ...View the full answer
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
A storage tank acquired at the beginning of the fiscal year at a cost of $86,000 has an estimated residual value of $10,000 and an estimated useful life of eight years. Determine the following: (a)...
-
A storage tank acquired at the beginning of the fiscal year at a cost of $344,000 has an estimated residual value of $50,000 and an estimated useful life of 16 years. Determine the following: (a) The...
-
A storage tank acquired at the beginning of the fiscal year at a cost of $344,000 has an estimated residual value of $50,000 and an estimated useful life of 16 years. Determine the following: (a) The...
-
The table contains real data. MySpace U.S. Advertising Revenue ($ millions) (a) Determine the maximum and minimum values for each variable in the table. (b) Use your results from part (a) to find an...
-
The following selected transactions were completed by Zippy Do Co., a supplier of zippers for clothing: 2015 Dec. 3. Received from Chicago Clothing & Bags Co., on account, a $36,000, 90-day, 6% note...
-
From the following alphabetized list of adjusted account balances, prepare the current asset section of Biotechs December 31, 2023, balance sheet. Account Accounts receivable.......... Allowance for...
-
A flow can be visualized by plotting the velocity field as velocity vectors at representative locations in the flow as shown in Fig. E4.1. Consider the velocity field given in polar coordinates by...
-
Garys Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $660,000 and a contribution margin of 75% of revenues. Requirements 1. Compute Garys monthly...
-
Considerations: Positive counterclockwise direction of the moment. Modulus of section = 474 ???? 103 ????????3 Beam area: 5600 ????????2 ???????? = ???????? Height: 350 ???? General instruction...
-
Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: 1. Performed services for $21,000 cash. 2. Purchased $6,800 of supplies on account. 3. A physical...
-
A backhoe acquired on January 5 at a cost of $84,000 has an estimated useful life of 12 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years...
-
Sandblasting equipment acquired at a cost of $54,000 has an estimated residual value of $10,800 and an estimated useful life of 12 years. It was placed in service on April 1 of the current fiscal...
-
(a) On 1 August 2017, a standard -rated supply is made with a value of 180. Calculate the VAT charged and the consideration for the supply. (b) On 2 January 2018 , a standard -rated supply is made...
-
On 1 July 2023, Bronzed Aussie Ltd sells a caravan to Cairns Ltd. The caravan has a normal sales price of $19 019. Rather than selling the item for its normal sales price, Bronzed Aussie Ltd sells...
-
The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 3 1 , 2 0 2 3 : Account Debit Credit 1 0 1 Cash $ 8 , 6 0 0 1 1 9 Merchandise inventory 1...
-
Mason Company provided the following data for this year: Sales $ 6 5 5 , 0 0 0 Direct labor cost $ 8 4 , 0 0 0 Raw material purchases $ 1 3 1 , 0 0 0 Selling expenses $ 1 0 6 , 0 0 0 Administrative...
-
How much will net operating income increase ( decrease ) per month if the monthly advertising budget increases by $ 5 , 0 0 0 , the monthly sales volume increases by 1 0 0 units, and the total...
-
Braverman Company has two manufacturing departments Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $ 2 0 . 0 0 per direct labor - hour and 1 2 0 % of...
-
After its initial public offering (IPO), DoorDash started trading publicly on the New York Stock Exchange (NYSE) in December 2020. An IPO occurs when a corporation sells stock to the general public...
-
The comparative statements of financial position of Menachem NV at the beginning and end of the year 2019 appear below. Net income of ¬34,000 was reported, and dividends of ¬23,000 were paid...
-
Throughout our nearly 118-year history, one thing that has not changed is our desire to help build a better world, where every person is free to move and pursue their dreams, explains Bill Ford, the...
-
Sales volume has been dropping at Textron Company. During this time, however, the shipping Department manager has been under severe financial constraints. The manager knows that most of the shipping...
-
Do the terms debit and credit signify increase or decrease or can they signify either? Explain
-
Weir Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $3,190, and there is no...
-
In January 2023, Marty's Fine Pens, a business carried on as a sole proprietorship, sells a limited-edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of...
-
An 90000 loan is amortized by payments of $1850 at the end of every 6 months at a rate of 2% compounded monthly 1. Construct a partial amortization schedule showing the last 2 payments 2. determine...
-
Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit...
Study smarter with the SolutionInn App