Using the straight-line method, what is the amount of depreciation for the first year for an asset
Question:
Using the straight-line method, what is the amount of depreciation for the first year for an asset purchased on January 1 for $3,000, with a useful life of 5 years, and with a salvage value of $200.00?
Salvage ValueSalvage 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:
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
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 Business questions
-
The following independent situations describe facts concerning the ownership of various assets. (a) Dewey Company purchased a tooling machine in 1998 for $60,000. The machine was being depreciated on...
-
The following independent situations describe facts concerning the ownership of various assets. (a) Dickenton Company purchased a tooling machine in 1998 for $85,000. The machine was being...
-
1. E Corporation is a subchapter S corporation owned by three individuals with calendar year ends. The corporation sells a sports drink as its principal product and has similar sales each month. What...
-
Charlie invested $2,000 at the end of 2015, $2,500 at the end of 2016 and $550 at the end of 2017.She earned 8% on her investment.How much money did she have at the end of 2017?
-
Charcoal from an ancient fire pit is found to have a carbon-14 content that is only 4.8% that of an equivalent sample of carbon from a living tree. What is the age of the fire pit?
-
Several years ago The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune to be both bankrupt and in prison for fraud. The prize was $9,420,713,...
-
Why is creating a WBS an important aspect of project planning?
-
On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporations outstanding stock. This cash payment was based on a price of $180 per share for Skylers $100 par value preferred stock and...
-
Find the minimal equivalent DFA. Explanation on how you did the work 10 a b a, b 91 92 93 94 b a, b b a, b 95
-
1. Use Maslow's Hierarchy of Needs to discuss the types of need that Maple Leaf addressed with its introduction of the Natural Selections line. 2. At which stage of the buying-decision process are...
-
What types of assets are included in the 5-year class for MACRS?
-
What are three uses of the information provided by the fixed assets system?
-
At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the...
-
The exact amounts of cola in different cans Levels of Measurement. State whether the data described are discrete or continuous and explain why?
-
The weights of checked bags on flights between San Francisco and Atlanta. State whether the data described are discrete or continuous and explain why?
-
A clinical trial of a new drug designed to treat hypertension (high blood pressure) is designed to last for three years, but after the first year it becomes clear that the drug is highly successful....
-
Body temperatures in Fahrenheit of all students in a statistics class. Identify the level of measurement (nominal, ordinal, interval, or ratio).
-
Identify a study that has been done (or should be done) to improve the safety of car drivers and passengers. Briefly describe the importance of statistics to the study.
-
ABC Corporation announced that it would pay a dividend to all shareholders of record as of Monday, April 3, 2006. It takes three business days after a purchase for the new owners of a share of stock...
-
Why can wastewater treatment requirements in Hawaii be less stringent than those in most locations on the U.S. mainland?
-
Insurance agents are intermediaries who help other members of the channel by providing information and handling the selling function. Does it make sense for an insurance agent to specialize and work...
-
Discuss the Place objectives and distribution arrangements that are appropriate for the following products (indicate any special assumptions you have to make to obtain an answer): a. A postal scale...
-
Give an example of a producer that uses two or more different channels of distribution. Briefly discuss what problems this might cause.
-
Q5 Financial maths Initial investment: E 25,000 Year 1 return: 8,000 Year 2 return: E 15,000 Year 3 return: E Year 4 return: E 10,000 5,000 (i) Enter appropriate formulae in the shaded cells in the...
-
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 10,000 2nd Quarter 7,500 3rd...
-
Annswer the following questions: [10 marks] A. Define two of the main advantages of explicit architecture. B. Compare between (1) Model-View-Controller (MVC), (1) Layered architecture pattern. The...
Study smarter with the SolutionInn App