Homework Answers
![When an asset is depreciated using DDB method, it shall be switched to straight-line depreciation method when depreciation expense for any year is less than depreciation under straight line method Double Straight Line Book Value Declining Depreciation Depreciation (BV) Balance for yearn Schedule (DDB) (SL) 0 $100,000 $60,000 $40,000 $20,000 $36,000 $24,000$15,000 $21,600 $14,400 $12,000 $10,800 $10,800 $40,000 $24,000 $14,400 $10,800 $10,800 [Using depreciation under DDB] [Using depreciation under DDB] [Using depreciation under DDB] [Using depreciation under SL] [Using depreciation under SL] 2 12,960 $8,640 $7,776$5,184 4](http://img.homeworklib.com/questions/1f726f90-73d1-11ea-a05d-99ad3f501cb2.png?x-oss-process=image/resize,w_560)
![Workings 200% DDB Depreciation for the period End of Period SL Depreciation for the period Year Year Dep. Rate Dep. Expns. Accum. Dep. Book Value Dep. Rate Dep. Expns $100,000 $60,000 $36,000 $21,600 $12,960 $7,776 0 40% | $40,000 | $40,000 40% | $24,000 | $64,000 40% | $14,400 | $78,400 $87,040 $92,224 1/5$20,000[$100,000 x 1/5] $15,000 [$60,000 x 1/4] 1/3 $12,000 [S36,000 x 1/3] 1/2 $10,800 [S21,600 x 1/2] $10,800 [$21,600 x 1/21 1 2 2 4 $8,640 $5,184 4 4 From the above tables, it is observed that depreciation expense under DDB in year-4 was $8,640 only but under SL, it is $10,800 Since this situation arises, method of depreciation shall be switched from DDB to SL for year-4 and 5. Accordingly, depreciation expense under SL for both year-4 and 5 would be: $21,600/2 years $10,800 NOTE: Under DDB method, Depreciation Rate-(1/useful life) x 2-1/5 years) x 2 :0.40-40% Depreciation Expense for year-1-$100,000 x 40%-$40,000; Book value : $100,000-$40,000-$60,000 Depreciation Expense for year-2-$60,000 x 40%-$24,000, Book value $60,000-$24,000-$36,000 Depreciation Expense for year-3-$36,000 x 40%-$14,400, Book value : $36,000-$14,400-$21,600 Depreciation Expense for year-4-$21,600 x 40%-$8,640; Book value : $21,600-$8,640-$12,960 Depreciation Expense for year-5-$12,960 x 40%-$5,184; Book value-$12,960-$5,184 $7,776](http://img.homeworklib.com/questions/1fce1100-73d1-11ea-9961-3990663c1a5b.png?x-oss-process=image/resize,w_560)
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Please draw a graph and explain that in the financial system,how
can the funds flow between...
Thomas Enterprises purchased a depreciable asset on October 1. Year 1 at a cost of $100,000....
Thomas Enterprises purchased a depreciable asset on October 1. Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining balance method, the asset's book value on December 31, Year 3 will be: $18.360 O $21,600 $32,400 $90,000 $27.540 Lomax Enterprises purchased a depreciable asset for $22.500 on March 1, Year 1 The asset will be depreciated...
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies....
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $900 for transportation charges, $800 for insurance for the equipment while in transit, $11,600 sales tax, and $2,200 for a special platform on which to place the equipment in the plant. Management of Tucker Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000....
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies....
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $900 for transportation charges, $800 for insurance for the equipment while in transit, $11,600 sales tax, and $2,200 for a special platform on which to place the equipment in the plant. Management of Tucker Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000....
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for...
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
QUESTION #2 PLEASE. Question 1 (5 points) In 2019, Leo construction traded in a light duty...
QUESTION #2 PLEASE.
Question 1 (5 points) In 2019, Leo construction traded in a light duty pickup truck that had a book value of $15,000. A new pickup truck having a fair market value of $55,000 was acquired. Because the vendor accepted the old truck as a trade-in, a deal was agreed and Leo construction would pay $35,000 for the new truck. Assume the new truck has a 5-year depreciable life, and an estimated salvage value of $5,000. Using the...
please explain why the useful life is like that aswell iholletati P9-31A (book/static) Question Help On...
please explain why the useful life is like that aswell
iholletati P9-31A (book/static) Question Help On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling the engine. The truck should remain in service for five years and have a residual value of $12,000. The truck's annual mileage is expected to be 32,000 miles in each of the first...
PY-SIH (SI 10) 3 Question Help On January 1, 2018, Brisk Delivery Service purchased a truck...
PY-SIH (SI 10) 3 Question Help On January 1, 2018, Brisk Delivery Service purchased a truck at a cost of $67.000. Before placing the truck in service, Brisk spent $4,000 painting it, $2,500 replacing tires, and $1,200 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual mileage is expected to be 20.000 miles in each of the first four years and 12,800 miles in the fifth year-92,800...
If you could please explain HOW you got the answer, that would be super helpful, thank...
If you could please explain HOW you got the answer, that would
be super helpful, thank you :)
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine A $8,200 200 2,700 520 Machine B $26,800 600...
please read thoroughly . please draw graphs for both 1&2. please explain each graph A. Draw...
please read thoroughly .
please draw graphs for both 1&2.
please explain each graph
A. Draw yorphs showing the effect on action potentials in a cell following effective doses of each of the listed neurotoxins. Assume that the cell is normally brought to threshold by an electrical stimulus applied to it, so that any abnormality is due to the toxin. Precise values for voltage and duration are not important, just a general trend in how the action potential may be...
EESEEEEEEEEEEEEEEEEE 1) TRUE/False a) The income tax rates are the same for capital gains and depreciation...
EESEEEEEEEEEEEEEEEEE 1) TRUE/False a) The income tax rates are the same for capital gains and depreciation recapture of an asset T/F b) Depletion can be calculated in two different approach: Depletion allowance or percentage depletion / c) In Straight Line depreciation, the book value is zero at the end of its life. T/F d) Depreciation is method of capital expensed over period of time T/F ce) Income tax rates are same for capital gains and depreciation recapture of an asset....
Thomas Enterprises purchased a depreciable asset on October 1. Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining balance method, the asset's book value on December 31, Year 3 will be: $18.360 O $21,600 $32,400 $90,000 $27.540 Lomax Enterprises purchased a depreciable asset for $22.500 on March 1, Year 1 The asset will be depreciated...
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $900 for transportation charges, $800 for insurance for the equipment while in transit, $11,600 sales tax, and $2,200 for a special platform on which to place the equipment in the plant. Management of Tucker Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000....
On January 2, 2018, Tucker Enterprises, Inc., paid $204,500 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $900 for transportation charges, $800 for insurance for the equipment while in transit, $11,600 sales tax, and $2,200 for a special platform on which to place the equipment in the plant. Management of Tucker Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000....
6. Depreciation methods Firms can use various methods to calculate depreciation, and it is important for you to consider these different methods when evaluating firms. The impact of different depreciation methods is stronger for asset-intensive firms. Major factors that affect the depreciation of a fixed asset include the purchase cost, residual/salvage value, and estimated useful life of the asset. The purchase cost includes the asset's explicit cost plus necessary costs associated with setting up and operating the asset (such as...
QUESTION #2 PLEASE.
Question 1 (5 points) In 2019, Leo construction traded in a light duty pickup truck that had a book value of $15,000. A new pickup truck having a fair market value of $55,000 was acquired. Because the vendor accepted the old truck as a trade-in, a deal was agreed and Leo construction would pay $35,000 for the new truck. Assume the new truck has a 5-year depreciable life, and an estimated salvage value of $5,000. Using the...
please explain why the useful life is like that aswell
iholletati P9-31A (book/static) Question Help On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling the engine. The truck should remain in service for five years and have a residual value of $12,000. The truck's annual mileage is expected to be 32,000 miles in each of the first...
PY-SIH (SI 10) 3 Question Help On January 1, 2018, Brisk Delivery Service purchased a truck at a cost of $67.000. Before placing the truck in service, Brisk spent $4,000 painting it, $2,500 replacing tires, and $1,200 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual mileage is expected to be 20.000 miles in each of the first four years and 12,800 miles in the fifth year-92,800...
If you could please explain HOW you got the answer, that would
be super helpful, thank you :)
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine A $8,200 200 2,700 520 Machine B $26,800 600...
please read thoroughly .
please draw graphs for both 1&2.
please explain each graph
A. Draw yorphs showing the effect on action potentials in a cell following effective doses of each of the listed neurotoxins. Assume that the cell is normally brought to threshold by an electrical stimulus applied to it, so that any abnormality is due to the toxin. Precise values for voltage and duration are not important, just a general trend in how the action potential may be...
EESEEEEEEEEEEEEEEEEE 1) TRUE/False a) The income tax rates are the same for capital gains and depreciation recapture of an asset T/F b) Depletion can be calculated in two different approach: Depletion allowance or percentage depletion / c) In Straight Line depreciation, the book value is zero at the end of its life. T/F d) Depreciation is method of capital expensed over period of time T/F ce) Income tax rates are same for capital gains and depreciation recapture of an asset....
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