Homework Answers
Ans to ques no. 6
Depreciation per year = (125,000-25,000) / 5 = 20,000 per year
Net book value at the end of year 2 = 125000 - (20000*2) = 85,000
Annual depreciation charged for year 2 = 20,000
So the correct option is (c) Depreciation charge 20000; NBV 85,000
Ans to ques no. 7
Depreciation charge to year 2 on reducing balance percentage of 30 %
Year 1 = 125000 - 30 % = 87,500 NBV
Year 2 Depreciation = 87,500 * 30% = 26,250
So corrct option is (c) i.e. 26,250
Ans to ques no. 8
Correct option is (c) i.e The pension fund sponsor ( the firm)
Ans to ques no. 9
Correct option is (e) i.e. Market value of firm's debt plus market value of owner's equity
Add Answer to:
There have four questions！ 6. Omega plc purchased a piece of equipment at a cost of...
6. Omega plc purchased a piece of equipment at a cost of £125,000. It is expected...
6. Omega plc purchased a piece of equipment at a cost of £125,000. It is expected to have a useful economic life of 5 years and a scrap value of £25,000 at the end of its life Omega uses straight line depreciation and a full year of depreciation is charged in the year of purchase What would be the annual depreciation charge and the net book value (NBV) of the equipment at the end of the second year of its...
1. Which of the following would not be classified as a current liability in the balance...
1. Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accruals (d) tax payable (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment research expenses purchase of an automobile interest paid on a loan to purchase inventory 3. Afirm sells goods on credit. The effect will be to (a) (b)...
There have nine questions. Plz！ 1 Which of the following would not be classified as a...
There have nine questions. Plz！
1 Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accrued expenses (d) unerned income (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment purchase of raw materials purchase of an automobile capitalisation of interest 3. A firm sells goods on credit. The effect will...
1 Which of the following would not be classified as a current liability in the balance...
1 Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accrued expenses (d) unerned income (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment purchase of raw materials purchase of an automobile capitalisation of interest 3. A firm sells goods on credit. The effect will be to: (a) (b) (c)...
Focus Inc. is considering the acquisition of a new piece of equipment. The machine's price is...
Focus Inc. is considering the acquisition of a new piece of equipment. The machine's price is $750.000. In addition, installation and transportation costs would be $60.000 and it would require $15,000 in spare parts thus increasing the firm's net working capital by that amount. The system falls into the MACRS 3-year class (depreciation rates of 33%, 45%, 15%, and 7%). The current machine it would replace could be sold for $85,000 and currently is being earried on the books for...
A machine purchased for $50,000 has a depreciable life of four years. It will have an...
A machine purchased for $50,000 has a depreciable life of four years. It will have an expected salvage value of $ 6,000 at the end of the depreciable life. 1. Using the straight-line method, what is the book value at the end of year 2? a. $27,000 b. $ 28,000 c. $35,000 d. $25,000 2. If the double-declining balance (200% DB) method is used, what is the depreciation amount for year 2? a. $10,000 b. $12,500 c. $20,000 d. $17,500...
Use the following information to answer the next four questions The adjusted account balances at December...
Use the following information to answer the next four questions The adjusted account balances at December 31, 2020 are as follows Accounts Cash Accounts Receivable Supplies Prepaid Insurance Building Accumulated Depreciation- Building Accounts Payable Owner's Capital Owner's Drawings Service Revenue Interest Revenue Depreciation Expense Insurance Expense Salaries and Wages Expense Supplies Expense Utilities Expense Totals Account Balances Debit Credis $9.000 25,000 7,000 3.000 350,000 50,000 66,000 245.000 20,000 160.000 29.000 36.000 25,000 44,000 12,000 19.000 550,000 550.000 21. The closing...
ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a...
ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2018 would be: A) $60,000. B) $11,000. C) $12,000. D) None of these. ABC reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, respectively. What is the amount of cash paid...
• The new equipment will have a cost of $600,000, and it will be depreciated on...
• The new equipment will have a cost of $600,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6). • The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). • The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The...
Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of...
Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of $200.000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss)...
6. Omega plc purchased a piece of equipment at a cost of £125,000. It is expected to have a useful economic life of 5 years and a scrap value of £25,000 at the end of its life Omega uses straight line depreciation and a full year of depreciation is charged in the year of purchase What would be the annual depreciation charge and the net book value (NBV) of the equipment at the end of the second year of its...
1. Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accruals (d) tax payable (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment research expenses purchase of an automobile interest paid on a loan to purchase inventory 3. Afirm sells goods on credit. The effect will be to (a) (b)...
There have nine questions. Plz！
1 Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accrued expenses (d) unerned income (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment purchase of raw materials purchase of an automobile capitalisation of interest 3. A firm sells goods on credit. The effect will...
1 Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accrued expenses (d) unerned income (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment purchase of raw materials purchase of an automobile capitalisation of interest 3. A firm sells goods on credit. The effect will be to: (a) (b) (c)...
Focus Inc. is considering the acquisition of a new piece of equipment. The machine's price is $750.000. In addition, installation and transportation costs would be $60.000 and it would require $15,000 in spare parts thus increasing the firm's net working capital by that amount. The system falls into the MACRS 3-year class (depreciation rates of 33%, 45%, 15%, and 7%). The current machine it would replace could be sold for $85,000 and currently is being earried on the books for...
A machine purchased for $50,000 has a depreciable life of four years. It will have an expected salvage value of $ 6,000 at the end of the depreciable life. 1. Using the straight-line method, what is the book value at the end of year 2? a. $27,000 b. $ 28,000 c. $35,000 d. $25,000 2. If the double-declining balance (200% DB) method is used, what is the depreciation amount for year 2? a. $10,000 b. $12,500 c. $20,000 d. $17,500...
Use the following information to answer the next four questions The adjusted account balances at December 31, 2020 are as follows Accounts Cash Accounts Receivable Supplies Prepaid Insurance Building Accumulated Depreciation- Building Accounts Payable Owner's Capital Owner's Drawings Service Revenue Interest Revenue Depreciation Expense Insurance Expense Salaries and Wages Expense Supplies Expense Utilities Expense Totals Account Balances Debit Credis $9.000 25,000 7,000 3.000 350,000 50,000 66,000 245.000 20,000 160.000 29.000 36.000 25,000 44,000 12,000 19.000 550,000 550.000 21. The closing...
• The new equipment will have a cost of $600,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6). • The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). • The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The...
Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of $200.000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss)...
Most questions answered within 3 hours.
-
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 2 minutes ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 10 minutes ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 5 minutes ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 minutes ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 10 minutes ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 9 minutes ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 29 minutes ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 32 minutes ago -
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 49 minutes ago -
The equation for the reaction of nitrogen and oxygen to form
nitrogen oxide is written as...
asked 53 minutes ago -
A scientist reproducing some photoelectric effect experiments
shines a light on a metal electrode, but doesn't...
asked 56 minutes ago -
In a study designed to test the effectiveness of magnets for
treating back pain, 35 patients...
asked 1 hour ago