A business purchased a motor car on 1 July 20X3 for $20,000. It is to be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A business purchased a motor car on 1 July 20X3 for $20,000. It is to be depreciated at 20 per cent per year on the straight line basis, assuming a residual value at the end of five years of $4,000, with a proportionate depreciation charge in the year of purchase. The $20,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account. How will the business profit for the year ended 31 December 20X3 be affected by the error? A business purchased a motor car on 1 July 20X3 for $20,000. It is to be depreciated at 20 per cent per year on the straight line basis, assuming a residual value at the end of five years of $4,000, with a proportionate depreciation charge in the year of purchase. The $20,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account. How will the business profit for the year ended 31 December 20X3 be affected by the error?
Expert Answer:
Answer rating: 100% (QA)
Annual Depreciation Original Value Salvage Value Useful Life 2000040... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
The company Smart Inc. is a company that produces Dog Shampoo in Toronto area. The results of the company, which has been mediocre for the past couple of years, have been presented in the annual...
-
A company that produces cell phones claims its standard phone battery lasts longer on average than other batteries in the market. To support this claim, the company publishes an ad reporting the...
-
A company that produces and markets continuing education programs on DVDs for the educational testing industry has traditionally mailed advertising to prospective customers. A market research study...
-
In Exercises, analyze and sketch a graph of the function. Label any intercepts, relative extrema, points of inflection, and asymptotes. Use a graphing utility to verify your results. f(x)=x16 - x
-
Maine Corporation buys motors for electric fans from another company that guarantees that at most 5% of its motors are defective and that it will replace all defective motors at no cost to Maine...
-
Solve the linear programming problems in Problems 56-59. Suppose the net profit per bushel of corn in Example 3 increased to \(\$ 2.00\) and the net profit per bushel of wheat dropped to \(\$ 1.50\)....
-
NBC has the rights to televise the Winter Olympics in two years, and is trying to estimate the value of these rights for possible sale to another network. NBC expects it to cost \($40\) million (in...
-
You have been given the expected return data shown in the first table on three assets'F, G, and H'over the period 20132016. Using these assets, you have isolated the three investment alternatives...
-
A firm is considering a new project which would be similar in terms of risk to its existing projects. The firm needs a discount rate for evaluation purposes. The firm has enough cash on hand to...
-
One model A1100 Kawasaki Jet Ski Personal Watercraft was sold for cash. This model retails for $9,375.00 plus 8% sales tax ($9,375.00 x 8% = $750.00). Invoice Number: G4011. Because a perpetual...
-
(2) How much does a bale of cotton weigh? (3) When is cotton planted in Missouri? When is itharvested? (4) How many T-Shirts can be made from a single bale ofcotton? (5) How many cotton farms are...
-
Watch this video, and then describe the role of balance sheets, income statements and statements of cashflows to companies. Pick a company off the Dow Industrial list Links to an external site.,...
-
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 58,000 68,000 May 48,000 58,000 June 68,000 58,000...
-
Sharon Lee Company issued $636,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Sharon Lee Company uses the effective-interest method of...
-
Jerry enjoys both soda and popcorn, and he has a weekly budget of $ 2 8 for these items. Sometimes he will buy more soda, and other times, he will buy more popcorn. Soda costs $ 2 per bottle, and...
-
Weston Products manufactures an industrial cleaning compound that goes through three processing departments-Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the...
-
1.Name and Explain the types of Auditing in the publicsector. 0 answers
-
A bubble-point liquid feed is to be distilled as shown in Figure. Use the Edmister group method to estimate the mole-fraction compositions of the distillate and bottoms. Assume initial overhead and...
-
Remodeling an office will cost $ 25,000 and will generate savings of $ 3,000 the first year, $ 4,000 the second year, and $ 5,000 per year thereafter. How long will it take to recoup the initial cost...
-
The following is a control chart for the average number of minor errors in 22 service reports. What can you conclude from these data? Explain how you reached yourconclusion. UCL LCL
-
1. Briefly describe the cookie production process. 2. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output rate? 3. Do...
-
Adaris Group, headquartered in the UK, owns a 70 percent interest in Adaris Malaysia. The acquisition cost was 200 million. At the date of acquisition, 1 January 2012, Adaris Malaysia's book value...
-
Misre Nim is played just like Nim but where the last player to move loses. A losing position is therefore a single Nim heap with a single token in it (which the player then has to take). Another...
-
The impartial game Cram is played on a board of \(m \times n\) squares, where players alternately place a domino on the board which covers two adjacent squares that are free (not yet occupied by a...
Study smarter with the SolutionInn App