On April 1, 2013, Parks Company purchased machinery at a cost of $42,000. The machinery is expected
Question:
On April 1, 2013, Parks Company purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a residual value of $6,000. Show all work and compute the depreciation expense for 2013 and 2014 assuming:
a. Parks uses the straight-line depreciation method.
b. Parks uses the sum-of-the-years’-digits depreciation method.
c. Parks uses the double-declining balance depreciation method.
Step by Step Answer:
a Comutation of the Depreciation using straightline depreciation method Depreciation Expenses Asset ...View the full answer
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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 TV system is expected to last for 50,000 hours before failure. Assume an exponential distribution for the time until failure. a. Is the distribution skewed or symmetric? b. What is the standard...
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
A company fabricates a company at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
What are the values of m and n after executing the following code? int n = 123456789; int m= 0; while (n != 0) { } m (10 m) + (n % 10); n = n/ 10;
-
Give two Friedel-Crafts acylation reactions that could be used to prepare 4-methoxybenzophenone. Which reaction would be faster or occur under milder conditions? Explain. OCH3 4-methoxybenzophenone
-
Olongapo Sports Corporation distributes two premium golf ballsthe Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Fixed expenses total...
-
The two wires are connected together at A. If the force P causes point A to be displaced horizontally 2 mm, determine the normal strain developed in each wire. C 300 mm 30 B 300 mm 30 A -P
-
This simulation presents the Keystone Computers and Networks, Inc. (Keystone Cash Work Memo for the general account and petty cash prepared by two members of your audit team- your responsibility is...
-
Halsted Corporation has identified three activity pools in its manufacturing process: equipment maintenance, setups, and quality control. Total cost assigned to the three pools is $214,500, $101,400,...
-
A ride hailing company has their DB structured in 3 major tables as described in the SCHEMA section below. Write a query to fetch the top 100 users who traveled the most distance using the service....
-
EBV is considering a $6M Series A investment for 6M shares of CP at $1 per share. The proposed capitalization table is the Exhibit 8-1 on page 162. What is the OPP and APP for the Series A?
-
What are the disadvantages of using online job sites when you look for your first job?
-
Suppose you have a large bucket containing 40% red gummy bears and 60% green gummy bears. You take many, many random samples of 25 gummy bears and each time note the proportion that are red. From...
-
Write a function complementWatsonCrick() that takes a DNA string as its argument and returns its Watson-Crick complement: replace A with T, C with G, and vice versa.
-
Write a program LongestPalindromic-Subsequence that takes a string as a command-line argument and determines the longest subsequence of the string that is a palindrome (the same when read forward or...
-
Write a program that takes as command-line arguments the name of an image file and the pixel coordinates of a rectangle within the image; reads from standard input a list of Color values (represented...
-
Prove that the dot product of two two-dimensional unit-vectors is the cosine of the angle between them.
-
Implement a main() method for Vector that unit-tests its methods.
-
Using only a periodic table as a guide, arrange each of the following series of species in order of increasing fi rst ionization energy. (a) S, Se 2- , O (b) Fe, Br, F (c) Cl, Cl - , F
-
(a) Explain why the concentration of dissolved oxygen in freshwater is an important indicator of the quality of the water. (b) How is the solubility of oxygen in water affected by increasing...
-
Explain two barriers to successful Coasian bargaining in the real world.
-
Refer to the data for Alaskan Fisheries, Inc., in Exercise 412. Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involvedCleaning and Packing. Data relating to...
-
Refer to the data for the Blending Department of Sunspots Beverages, Ltd., in Problem 4-13. Assume that the company uses the FIFO method rather than the weighted-average method in its process costing...
-
Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: All...
-
Water flows through a pipe section that tapers from an internal diameter of 200 mm down to 100 mm over a distance of 1 m. Determine the pressure drop over the section for a flow of 0.06 m3s-1. The...
-
Calculate the binding energy per nucleon for Be, 59 Co, 208 pb, and 195 pt. (For the atomic masses, see this table. Enter your answers to at least two decimal places.) (a) Be MeV/nucleon 59 Co...
-
A.Final ProjectTeamProjectCustom Schema: 200 points Extra Credit Group of 3 people : Designer and Developer ( ERD, tables, data ) Team Leader/Power User ( Business Questions/Queries, Real Life...
Study smarter with the SolutionInn App