A storage tank acquired at the beginning of the fiscal year at a cost of $61,000 has
Question:
A storage tank acquired at the beginning of the fiscal year at a cost of $61,000 has an estimated residual value of $9,000 and an estimated useful life of 20 years. Determine the following:
(a) the amount of annual depreciation by the straight-line method and
(b) the amount of depreciation for the first and second years computed by the double-declining-balance method.
Step by Step Answer:
a Annual Depreciation under Straightline Method Cost o...View the full answer
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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
-
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...
-
The task in this design project is to design an actuation system to power the ram's reciprocating motion in a small-size shaper. The power source of the actuation system is an AC motor with 0.75 hp...
-
An economy consists of two consumers (Julie and Carina), each consuming positive amounts of two goods, food and clothing. Food and clothing are both produced with two inputs, capital and labor, using...
-
Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after...
-
When collecting data from different sample locations in a lake, a researcher uses the line transect method by stretching a rope across the lake and collecting samples at every interval of 5 meters....
-
You are provided the following information about McPherson Inc.: Purchases by quarter for 2018 were Accounts payable at the beginning of the 1st quarter was $204,000. McPherson gets 60 days to pay...
-
Using the following information for McDonovan, Inc.'s stock, calculate the stock's expected return. State Probability Return Boom 20% 40% Normal 60% 15% Recession 20%-20%
-
The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2013 fiscal year. The June 30, 2012, credit balance of the owners capital account was $53,660, and the owner...
-
Equipment was acquired at the beginning of the year at a cost of $280,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an...
-
On August 7, Blue Ocean Inflatables Co. paid $2,800 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter...
-
Convert the following radian measures to degrees. 5
-
Computer Warehouse is a wholesale firm that supplies computer hardware to large companies. Accepting orders is subject to the customer meeting agreed-upon terms of payment. Details of rejected orders...
-
Venezuela is in deep trouble. Although the country boasts the largest oil reserves on the planet, a fact that should make it rich, poor governance has created an economic crisis of historic...
-
What are the four elements of self-defense?
-
Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next three months follow. Prepare a sales budget for...
-
Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The corporation uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of...
-
Explain carefully why the tax multiplier [Y/T = -b / (1 - b)] is negative and why it is smaller in absolute value than the government expenditure multiplier [Y/G = 1/(1 - b)].
-
Calculate the electrical conductivity of a fiber-reinforced polyethylene part that is reinforced with 20 vol % of continuous, aligned nickel fibers.
-
A recent financial magazine indicated that the airline industry has poor financial flexibility. What is meant by financial flexibility, and why is it important?
-
A recent financial magazine indicated that the airline industry has poor financial flexibility. What is meant by financial flexibility, and why is it important?
-
A recent financial magazine indicated that the airline industry has poor financial flexibility. What is meant by financial flexibility, and why is it important?
-
A projectile is fired with an initial speed of vo = 6 0 m / s at = 3 0 o above the horizontal, as shown below. what is the maximum range ( R ) moved by the projectile along the x - axis. Vosing 60...
-
Why would a firm record the number of abandoned virtual carts on its website? please explain.
-
A taxpayer claimed the lifetime learning credit on the federal section of the tax return. Can they also claim the education of the state seccion?
Study smarter with the SolutionInn App