Alan Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2012. The
Question:
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Step by Step Answer:
The depreciable cost is 27000 31000 4000 With ...View the full answer
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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
-
Apex Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2010. The truck is expected to have a salvage value of $4,000 at the end of its 5-year useful life. Compute annual...
-
Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual...
-
Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute...
-
Three taxpayers each wish to make a BADR claim in relation to a qualifying disposal made during 2020-21. Their previous claims are as follows: (a) Gemma made a BADR claim in relation to a gain of...
-
Determine the magnitude and the point of application of the smallest additional load that must be applied to the foundation mat of Prob. 3.131 if the resultant of the five loads is to pass through...
-
Figure out, salaries, net income, add net income with retained earnings and totally stockholder equity , ?accounts payable and total liabilities and stockholders equity RILEY, INCORPORATED Statement...
-
Explain parameters and return values in the framework of messages. Provide examples.
-
Carr Corporation provided the following partial- trial balance for the current year. Prepare a single- step income statement for the year ended December 31. Carr is subject to a 40% income tax rate....
-
Please answer the following questions based on your own experience. 1. What type of investment are you into? 2. Why did you choose that type of investment? What are your reasons? 3. Why having an...
-
What costs would the New England Patriots have considered when analyzing the purchase of team planes and when pricing the rental of its team planes? The New England Patriots recently became the first...
-
Deutsch Company incurs these expenditures in purchasing a truck: cash price $24,000; accident insurance (during use) $2,000; sales taxes $1,080; motor vehicle license $300; and painting and lettering...
-
Erin Company purchased land and a building on January 1, 2012. Managements best estimate of the value of the land was $100,000 and of the building $250,000. However, management told the accounting...
-
Yahama Ltd makes several spare parts for motorbikes including Suzuka and Yahama parts. The company has recently switched from the traditional absorption costing to the activity-based costing system....
-
A growing niche in the restaurant business is gourmet-casual breakfast, lunch, and brunch. Chains in this group include Panera Bread. Suppose that the mean per-person check for breakfast at Panera...
-
What sample size is large enough to assume that the sampling distribution of the proportion is normally distributed?
-
Given the sample data, how can we determine confidence intervals when the standard deviation of population is unknown?
-
In groups of four or five, consider the following information. On 1 July 2019, Stevenson Pty Ltd, a proprietary company with three shareholders, acquired some property by issuing 100 000 shares to...
-
What are the components for finding a confidence interval? What happens to confidence intervals when the confidence level is increased?
-
The thermal conductivity of an opaque insulating material is to be determined by lighting a 5-W light bulb inside a hollow sphere made of that material and measuring the surface temperatures. The...
-
If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?
-
Estimate using the Linear Approximation or linearization, and use a calculator to estimate the error. 8.1 1/3 2
-
Quinn Company sells office equipment on July 31, 2014, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2014, had accumulated depreciation of $42,000. Depreciation...
-
Suppose in its 2014 annual report, McDonalds Corporation reports beginning total assets of $28.46 billion; ending total assets of $30.22 billion; net sales of $22.74 billion; and net income of $4.55...
-
Downs Company purchases a patent for $156,000 on January 2, 2014. Its estimated useful life is 6 years. (a) Prepare the journal entry to record amortization expense for the first year. (b) Show how...
-
What effect does an antagonist drug have over the receptors ?
-
Read this article on the differences and Comparisons between UNIX and LINUX http://www.diffen.com/difference/Linux_vs_Unix, then do some research and post your thoughts on each of the systems. Based...
-
Assume that in 2023, Bobby had a vacant lot that was given to him as a gift from his father that had an FMV of $40,000 and an adjusted basis of $15,000.
Study smarter with the SolutionInn App