A company purchased an equipment system for $325,000 on January 2. The company expects the equipment to last for eight years or 81,250 hours of operation, with no estimated salvage value. During the first year, the equipment was in operation for 8,000 hours, while in the second year, the equipment was in operation for 8,700 hours. Compute the depreciation expense relating to the equipment for Year 1 and Year 2 using the following depreciation methods:a. Straight-line.b. Double-declining-balance.c. Units-of-production.
What will be an ideal response?
| a. | $325,000/8 = $40,625 for both Year 1 and Year 2 |
$325,000 * .25 = $81,250 for Year 1
($325,000 ? $81,250) * .25 = $60,937.50 for Year 2
c. $325,000/81,250 = $4 per hour depreciation rate
$4/hour * 8,000 hours = $32,000 for Year 1
$4/hour * 8,700 hours = $34,800 for Year 2
You might also like to view...
The role of the steering committee includes
a. designing the system outputs b. resolving conflicts that arise from a new system c. selecting the programming techniques to be used d. approving the accounting procedures to be implemented
Complete the following statement by choosing the best response: If the functional currency of a foreign subsidiary is the local currency of the country in which the foreign subsidiary operates, then
a. only retained earnings must be remeasured into U.S. dollars. b. the foreign subsidiary's financial statements must be remeasured into U.S. dollars. c. only the foreign subsidiary's assets and liabilities must be remeasured into U.S. dollars d. the foreign subsidiary's financial statements are translated into U.S. dollars.
Which is not a strategy for a retailer to increase its average sale?
a. placing impulse goods in high-traffic locations b. opening additional hours c. increasing impulse sales d. suggestion selling
The choice of a seller may actually affect the final product selection during the purchase stage of the consumer buying decision process.
Answer the following statement true (T) or false (F)