DeLito Tax Planning Service bought production equipment for $10,200 on January 1, 2017. It has an estimated useful life of five years and zero residual value
DeLito uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2017, the book value of this equipment shown on its balance sheet will be ________.
A) $9,180
B) $10,200
C) $11,220
D) $10,370
A .Straight-line depreciation = (Cost - Residual value) / Useful life
Straight-line depreciation = ($10,200 — 0 ) / 5 years = $2,040 per year
Book value of equipment = $10,200 - $1,020 = $9,180
You might also like to view...
Ad-on International is an advertising company. It estimated the overhead costs for March, 2014, to be $950,000 and direct labor hours to be 5,000 hours. In March, it incurred overhead costs of $1,150,000 and 5,100 labor hours. The amount of overhead costs applied by the company in March, 2014, is:
A) $969,000. B) $1,150,000. C) $950,000. D) $1,173,000.
Which of the following questions is false?
a. capital budgeting involves comparing and evaluating alternate projects. b. Many firms use both financial and nonfinancial criteria to evaluate proposed capital projects c. a capital asset can be either tangible or intangible. d. budgets are not prepared for anticipated capital expenditures
Crowdfunding is an online practice that applies only in business-to-business transactions; it is not appropriate to use with family and friends. ?
Indicate whether the statement is true or false
Which of the following cash flow patterns would produce multiple internal rates of return (IRRs) for a project?
A. A project requires cash payments for the first three years of its life, followed by cash inflows for the remainder of its life. B. A project requires a large cash payment today, but it generates cash inflows every year after it is purchased. C. A project requires cash payments for its entire life. D. A project requires a large cash payment today, it generates cash inflows for the next four years, a large cash payment must be paid in Year 5, and then cash inflows are generated for the remainder of the project's life. E. A project with a five-year life requires no cash outlay today, it generates cash inflows for the next three years, and then requires cash payments for the last two years.