A storage tank acquired at the beginning of the fiscal year at a cost of $86,000 has
Question:
(a) The amount of annual depreciation by the straight-line method
(b) The amount of depreciation for the first and second year computed by the double-declining-balance method.
Step by Step Answer:
a 12 12 of 86000 10000 ...View the full answer
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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 dairy storage tank acquired at the beginning of the fiscal year at a cost of $98,500 has an estimated residual value of $7,500 and an estimated useful life of 10 years. Determine the following: (a)...
-
A secondhand bulldozer acquired at the beginning of the fiscal year at a cost of $56,000 has an estimated salvage value of $6,500 and an estimated useful life of 12 years. Determine the following....
-
Equipment acquired at the beginning of the fiscal year at a cost of $360,000 has an estimated residual value of $45,000 and an estimated useful life of 10 years. Determine the following: (a) The...
-
Write a paper on the brothers karamazov, fyodor dostoyevsky creates a conversation between two brothers: the cynical ivan, and the devoutly religious and earnest alyosha. In their dialogues...
-
What is marketing myopia, and how can it be avoided?
-
Where in the Flinn diagram would the different states of strain shown in Figure 2.12 plot? Uniaxial contraction (compaction) Uniform extension (constriction) X=Y=1>Z Plane strain X>>>Y=Z Uniaxial...
-
Give the fields of application of gas turbines.
-
Enco Tech Corporation is in the business of leasing new sophisticated satellite systems. As a lessor of satellites, Enco Tech purchased a new system on December 31, 2011. The system was delivered the...
-
4. [20pts] Debug the following code by hand. Identify all errors, and whether they are a syntax or logic error (comments indicate how the code should work). int x=2, Y=4; Byte Z = -350; for (I=1; I...
-
Evaluate the information and prepare a written financial plan of maximum 8 pages following the table of contents as outlined below. Assumptions and Key Considerations Recommendations Financial...
-
Vanity Press, Inc., has annual credit sales of $1,600,000 and a gross profit margin of 35 percent. a. If the firm wishes to maintain an average collection period of 50 days, what level of accounts...
-
Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $................................................... 10,000,000 Accounts payable...
-
QP Corp. sold 4,000 units of its product at $50 per unit in year 2017 and incurred operating expenses of $5 per unit in selling the units. It began the year with 700 units in inventory and made...
-
Use the following news clip to work Problems Calculate the slope of the relationship in Problem 4 between 3,308 and 4,134 theaters. Problem 4 Draw a graph of the relationship between the revenue per...
-
Which of the following diagram types are supported by UML:sequence charts, record charts, Y-charts, use cases, activity diagrams, or circuit diagrams?
-
Which techniques can be used to customize an embedded operating system in the necessary way?
-
One of the types of Petri nets allows several non-distinguishable tokens per place. Which components are used in a mathematical model of such nets? N=(P, . )
-
Every year between May and September, all 54 employees of Basecamp, a Chicago-based web applications company, work a short week: just four days a total of 32 hours. They work a conventional five-day...
-
In the United States, Tang has been around for half a century, and the powdered, tangerine-flavored drink was the chosen beverage for some of the early NASA space flights. For example, in 1962...
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
Part 1. A retailer sells merchandise for $500 cash on June 30 (cost of merchandise is $300). The retailer collects 7% sales tax. Record the entry for the $500 sale and its applicable sales tax. Also...
-
(i) When should a firm cut dividend pay out rate and increase retention rate to maximize share price? (ii) How can the dividend-discount model handle changing growth rates?
-
November 2021 (actual) December 2021 (budgeted) January 2022 (budgeted) Cash sales $ 80.000 Credit sales Total sales 240,000 $320,000 $100,000 360,000 $460,000 $ 60,000 180,000 $240,000 Management...
-
A firm has 200 shareholders, you among them. Each shareholder owns $20 worth of sto addition, Mr. Hostile owns 50 shares (for a firm total of 250 shares) and is trying to fi management. In an attempt...
Study smarter with the SolutionInn App