It is confusing to read, but can someone help me with answering these?
Straight-line: This method spreads the cost of the fixed asset evenly over its useful life.
Industry: Automobiles-General Motors depreciates depreciable property using the straight-line method.
Declining-balance: An accelerated method of depreciation, it results in higher depreciation expense in the earlier years of ownership.
Units-of-production: The total estimated number of units the fixed asset will produce over its expected useful life, as compared to the number of units produced in the current accounting period, is used to calculate depreciation expense.
Industry: Mines and Quarries might use this method.
4. Straight-line method |
|||
Particulars |
Amount |
||
Cost of equipment |
500,000.00 |
||
Residual value |
75,000.00 |
||
Total useful life |
10.00 |
||
Depreciation amount |
SLM =(Cost − Salvage Value)/ |
(500000-75000)/10 |
42,500.00 |
Machine Hour Rate Method |
|||
Cost of equipment |
500,000.00 |
||
Residual value |
75,000.00 |
||
Life of asset in hours |
125,000.00 |
||
Depreciation per hour |
(Cost- Resiual value)/ Life of asset in hours |
(500000-75000)/125000 |
3.40 |
Depreciation - First year |
7000*3.4 |
23,800.00 |
|
Depreciation - Second year |
10000*3.4 |
34,000.00 |
It is confusing to read, but can someone help me with answering these? 1. Explain the...
1. Explain the concept of capitalization or capitalized? Include what type of costs might be included ? 3 2. Explain the concept of depreciation? 5 3. Describe the 3 months of depreciation and provide 3 examples of industries that might use each method? 5 4. Charles Inc. manufactures beauty supply equipment A review of its books for October revealed the following 5 cost of equipment 500,000 useful life+ 1o years residual at the end of service life 75,000. Total hours...
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1. Explain the concept of capitalization or capitalized? Include what type of costs might be included ?3 2. Explain the concept of depreciation? 5 3. Describe the 3 months of depreciation and provide 3 examples of industries that might use each method? 5 4. Charles Inc, manufactures beauty supply equipment A review of its books for October revealed the following 5 cost of equipment 500,000 useful life+ 10 years residual at the end of service life 75,000. Total hours...
confused
1. Explain the concept of capitalization or capitalized? Include what type of costs might be included ?3 2. Explain the concept of depreciation? 5 3. Describe the 3 months of depreciation and provide 3 examples of industries that might use each method? 5 4. Charles Inc. manufactures beauty supply equipment A review of its books for October revealed the following 5 cost of equipment 500,000 useful life+ 10 years residual at the end of service life 75,000. Total hours...
can someone help me with this and explain how they did it?
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hi please help me with this i think i got it all wrong.
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Please help me understand the difference between capitalize and
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For (b), please explain how to get $2292 as an answer. Thank
you.
Determine the proper treatment of each of the following expenditures: a. Zoe purchases land costing $8,000. During the current year, she pays $2,000 to have utilities and sewer lines installed on the property. Zoe also pays $600 in interest on the loan used to obtain the land and $300 in property taxes on the land. The...
Can someone help me find the depreciation? Music Equipment owned by the business: original purchase price was $48,000, estimated useful life was 10 years, and estimated residual value was $8,700 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
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youuu.
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