Question: Question 7 (6 marks, suggested time 4 - 6 minutes) Education Company purchased equipment on January 1, 2020. Assuming the cost of the equipment

Question 7 (6 marks, suggested time 4 - 6 minutes) Education Company

Question 7 (6 marks, suggested time 4 - 6 minutes) Education Company purchased equipment on January 1, 2020. Assuming the cost of the equipment is $60.000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31. Place your answer in the box to the far right hand side of the question. Show calculations in the space provided below each question. In words, what is (are) the component(s) of this asset's depreciable amount? In numbers, what is the depreciable amount of the asset? 3. What is the depreciation rate? (%) In words, at the end of the asset's useful life, what is the carrying value of the asset. 4 In numbers, at the end of the asset's useful life, what is the carrying value of the asset.

Step by Step Solution

★★★★★

3.58 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Solution Workings Date of Purchase 1 st Jan 2020 Cost 60 000 Useful Life 4 Years Residual Value 6000 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question A4 A resultant stress state is superposed from the two states 1 and 2 shown in Figure 4. 70 MPa 60 MPa 1 2 Figure 4 (a) Draw the Mohr's circle of stress state 2. 60 40 MPa (2 marks) (b)...

A machine with a useful life of 6 years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000. The machine was sold for $15000 on April 1 in year 4. (a). What was the...

The Winsey Company purchased equipment on January 2, 2007 for $700,000. The equipment has the following characteristics: Estimated service life ... 20 years ... Estimated residual value ... $50,000...

The Winsey Company purchased equipment on January 2, 2010, for $700,000. The equipment has the following characteristics: Estimated service life .........20 years 100,000 hours 950,000 units of...

As of January 1, 2012, the trial balance for Haven Hospital was as follows: During the fiscal year ended December 31, 2012, the following transactions occurred: 1. Patient service revenue amounted to...

The following is Mann Corp.'s comparative statement of financial position at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017: Additional information: 1. On...

Following are the concepts of accounting covered in Chapters 2 through 5. Match each transaction with its related concept by entering the appropriate letter in the space provided. Use one letter for...

Hogan Company uses the net method of accounting for sales discounts. Hogan also offers trade discounts to various groups of buyers. On August 1, 2007, Hogan factored some accounts receivable on a...

Select the best answer for each of the following items: 1. Golf Company acquired 80% of the outstanding stock of Ping Company, a foreign company, in an acquisition accounted for as a purchase...

On July 1, Year 4, Aaron Co. purchased 80% of the voting shares of Bondi Ltd. For $543,840. The statement of financial position of Bondi on that date follows. The accounts receivable of Bondi were...

Inglewood Landscaping Corp. began constructing a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $184,000 cash. In addition, it paid $2,000 in surveying costs...

A pump delivers gasoline at 20C and 12 m3/h. At the inlet, p1 = 100 kPa, z1 = 1 m, and V1 = 2 m/s. At the exit p2 = 500 kPa, z2 = 4 m, and V2 = 3 m/s. How much power is required if the motor...

This cross bracing is made of 8-in schedule 40 pipe, which has an inner diameter of 7.981 in, and outer diameter of 8.625 in. The end of these cross braces consists of a 7/8-in- thick plate welded...

For each of the described curves, decide if the curve would be more easily given by a polar equation or a Carteslan equation. Then write an equation for the curve. ( a ) a Tine through the origin...

Refer to the information in Exercise 4-4. In Exercise 4-4 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming,...

Given the following regression output, Answer the following questions: a. Write the regression equation. b. If x1 is 4 and x2 is 11, what is the expected or predicted value of the dependent variable?...

Refer to the information in Exercise 4-1. Assume that the following information is available for the company's two products for the first quarter of 2015. _____________________Deluxe...

Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated as a job. The company currently has...

Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production: Sales revenue.......................................................

A company is transitioning from a predictive approach to an agile approach. The team members work remotely, and some have personal conflicts that make them unavailable for some project ceremonies....

5 questions in the file. Need answers and some details about how to get the answer. QUESTION 1 (2 + 4 + (2+3) + (3 + 2) + 4 = 20 marks) Murray Cruises provides standard riverboat cruises for tourists...

I need this back in an hour. thanks.. 25 multiple choice questions!!! Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines...

Can someone please help?!?!?! I don't get accounting :( University of Maryland University College Final Examination Acct220: Principles of Accounting I For this exam, omit all general journal entry...

Im having trouble with the journal entries questions. The first six questions! Can anyone assist? University of Maryland University College Final Examination Acct220: Principles of Accounting I For...