Wrexder plc bought machinery for £154,000. The machinery has an estimated useful life of 4 years and an estimated residual value of £12,000. If depreciation is to be provided on the straight-line basis, which of the following statements is true? Select one answer: O Depreciation will be provided at 20% on cost O Depreciation will be provided at 25% on cost O Depreciation will be provided at 23% on cost O Depreciation will be provided at 27% on cost Reset
Q: According to your book Financial Management for Small Businesses, 2nd OER Edition, In the management…
A: Cash management: Cash management is the process of controlling an organization's cash flows. It…
Q: Temporary differences result in future taxable or deductible amounts when the related asset or…
A: Temporary differences result from timing differences between the recognition of income and expenses…
Q: Differential Chemical produced 10,500 gallons of Preon and 14,000 gallons of Paron. Joint costs…
A: Joint costs occur when a firm produces a large number of products and its cost function cannot be…
Q: McFriend Inc. records its liabilities for employees’ vacations at the end of each month. McFriend…
A: INTRODUCTION: Vacation pay is the remuneration that employees receive for accrued vacation days…
Q: orward contracts are contracts to buy or sell a specified amount of an asset at a specified, fixed…
A: Solution: Forward contracts are contracts to buy or sell a specified amount of an asset at a…
Q: the entries to close Income Summary and the Owner's Drawings account. (Credit account titles are…
A: The question is related to the Closing Entries. The Income summary and Owner's Drawing Accounts will…
Q: Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur…
A: ANSWER:- b. The investment interest expense deduction be $2,500 if they also had a $2,000 long-term…
Q: Instructions Equipment was acquired at the beginning of the year at a cost of $562,500. The…
A: Depreciation: It is a fall or reduction in the value of fixed asset because of continuous usage,…
Q: Industrial Development Corporation (IDC) granted Naseer Pty(Ltd) R20 000 on 01 January 2021 to…
A: Grant is, receiving of some amount of resources, for free. It may be conditional or unconditional.
Q: The following are costs a cabinet maker incurred for the year: Advertising Cost of hardware (slides,…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Can you assess the company’s overall cash flow disposition for 2019, 2020 and 2021 in terms of the…
A: Cash flow statement is one of the financial statements that a firm needs to prepare at the end of…
Q: Problem 6-37 Cost Behavior and Analysis; High-Low Method (LO 6-2, 6-4, 6-5) Antioch Extraction,…
A: Cost are the amount incurred for producing something. The cost can be fixed, variable and…
Q: PB8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Collect [LO 8-4] Big Green Corporation is…
A: Receivable turnover ratio: It implies to a ratio that measures and analyze the efficiency of a…
Q: The Cycle Division of Sheffield Company has the following unit data related to its most recent…
A: INTRODUCTION: The contribution margin of a company is the difference between its sales revenue and…
Q: According to your book Financial Management for Small Businesses, 2nd OER Edition, describe reasons…
A: Financial management is the management of financial resources of business, in such a way that the…
Q: The following selected information is for Cullumber Company for the year ended January 31, 2024:…
A: Multiple income statements are prepared to segregate income and expenses into different categories.…
Q: The following items are taken from the adjusted trial balance of Blossom Company for the month…
A: CURRENT ASSETS A current asset is an asset that a company holds and can be easily sold or…
Q: On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years,…
A: Bonds :— It is one of the source of capital that pays periodic interest and face value at the end of…
Q: Which of the following alternatives represents the correct amount that must be disclosed as proceeds…
A: Financing activity is defined as one of the parts of the cash flow statement that shows the flow of…
Q: Cash and short-term investments Accounts receivable (net) Inventory Property, plant, and equipment…
A: Return on Stockholders' Equity :— It is calculated by dividing net income by average total…
Q: The RLX Company just paid a dividend of $315 por share on its stock. The dividends are expected to…
A: The dividend is the distribution of profit to the shareholders. The dividend growth model can be…
Q: ingston Company's December 31, year-end financial statement contained the following errors An…
A: Introduction: In the given information there is recording error of transaction so it is not allocate…
Q: Sunland Corporation sells three different models of a mosquito "zapper." Model A12 sells for $47 and…
A: Breakeven point is the point at which the entity recovered its fixed costs. It is the level of sales…
Q: On October 1, 2020, CO. A PURCHASED EQUPMENT FOR $210,000. The estimated useful life of the…
A: Depreciation is a non cash expense which is incurred in every organization. It reduces the value of…
Q: Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a…
A: The decision whether to accept or reject the offer depends upon the incremental net income or loss.…
Q: Exercise 6-24 (Algo) Basic Cost Flow Model (LO 6-1) Assume that the following events occurred at…
A: The work in process includes the direct costs that are incurred during the period. The work in…
Q: No 1 2 3 4 5 6 7 Date January 15, 2024 Loss on investments January 15, 2024 Retained earnings April…
A: Journal entries are the first step in recording financial transactions. Journal entries are based on…
Q: During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to…
A: When an asset is sold for more than the book value of an asset there is gain on disposal , if…
Q: Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's…
A: Expected cash receipts are total cash collection that is expected to bring in the business from all…
Q: Write a memo to Erica Grier, chief financial officer, that explains each transaction.
A: Accounts receivable is a account that records all the transactions done with a customer. Iff if…
Q: Two machines are evaluated for a new project. described in the following table. Determine EUAC for…
A: Introduction:- EUAC means Equivalent Uniform Annual Cost. It is used to calculate annual cost and…
Q: Slowhand Corporation has provided its contribution format income statement for April.…
A: A cost accounting measure that help in measuring the degree which signifies the increase in…
Q: A printing press that costs $288,400 is depreciated using the 1.5 declining-balance method. The…
A: Depreciation expense is the one which is charged on the non-current assets of the entity so as to…
Q: 2 3 Declared and paid cash dividends $122.000. Corrected overstatement of 2021 het income because of…
A: Retained earnings refers accumulation of earnings over a period of time from the start of the…
Q: Prepare a 2020 income statement for Carla Vista Corporation based on the following information: Cost…
A: Income Statement For the Year Ended December 31, 2020 Sales revenue $735,000 Cost of goods sold…
Q: Assume a company’s sales budget for April and May is 39,000 units and 41,000 units, respectively.…
A: Solution: Budgeted cost of raw materials purchases = Budgeted quantity of raw materials purchases…
Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280.…
A: Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (selling…
Q: The company incurred $800 of income tax but has made no tax payments this year. Record the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts, any unrecognized…
Q: Hayes Corp. is a manufacturer of truck trailers. On January 1, 2021, Hayes Corp. leases ten trailers…
A: ANSWER:- 1. It is a sales-type lease to the lessor, Hayes Corp. Hayes’s (the manufacturer) profit…
Q: Ceradyne Limited accepts a three-month, 7%, $43,600 note receivable in settlement of an account…
A: Notes Receivable - It is the Promissory note issued by the payer to the collector. Notes receivable…
Q: Lousia's superannuation balance last year was $1 million and she has contributed a total of $330,100…
A: Due to a legal requirement or voluntarily to keep employees on board for a longer period of time,…
Q: Complete the following: (Do not round intermediate calculations. Round your final answers to the…
A: Note: 5/10, n/60: Here, 5 represents the discount rate if payment is made within ten days. And if…
Q: Bell Corporation manufactures computers. Assume that Bell: • allocates manufacturing overhead…
A: Manufacturing overhead cost is all the indirect costs incurred while producing the product.…
Q: Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car…
A: When evaluating two alternatives the cost and benefits are evaluated, it is to be determined which…
Q: Questions 1. East Bank Regional Hospital is considering the purchase of new diagnostic testing…
A: ANSWER:- a. Disease No Disease T+ 90 20 120 T- 10 170 180 100 200 300 (THE TABLE…
Q: Lacy Construction's pension plan assets were $340 million at the beginning of the year. The return…
A: Pension plan assets: Pension plan assets is a funds created by a company to meet its future…
Q: Migliorise Inc., produces and sells a single product. The product sells for $300.00 per unit and its…
A: BREAKEVEN POINT OF SALES Breakeven point is a Point of Sales Where where total Revenue or Production…
Q: On 1 October 2014, Fresh Company acquired an item of plant under a five-year lease agreement. At…
A: Current liability is the amount that a company is required to payback within the period of 12 months…
Q: Define job costing. When and why is it used? ( in Managerial Accounting )
A: Job costing is the method of allocating the costs to a particular project.
Q: Use the weighted-average inventory method to calculate the cost of the ending inventory for the…
A: Ending inventory is the amount of inventory that an entity have, at the end of the period. It is…
Kk.49.
Step by step
Solved in 3 steps
- Your firm bought a machine for £5,000 on 1 January 20X1, when it had a useful life of four years and a residual value of £1,000. Straight-line depreciation is to be applied on a monthly basis. On 31 December 20X3, the machine was sold for £1,600. The amount to be entered in the 20X3 statement of profit or loss for profit or loss on disposal is:A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year? Subparts 4-5 onlyA depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year?
- c) In practice, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case. d) Oak Ltd purchased a machine for £40,000. At the end of its useful life of four years, the amount received on sale was £4,000. When the asset was purchased,the business received two estimates of the likely residual value of the asset. These were: (a) £8,000 and (b) zero. Show the annual depreciation expenses over the four years and the total depreciation expenses for the asset under each of the two estimates. The straight-line method should be used to calculate the annual depreciation expenses.Consider two hypothetical companies: A and B. At the beginning of year 1, each company buys anidentical piece of equipment for £2,100. The two companies have the same assumptions about theequipment useful life, estimated residual value, and productive capacity. The annual production ofeach company is the same. However, each company uses a different method of depreciation. Asdisclosed in each company’s notes to the financial statements, each company’s depreciation method,assumptions, and production are as follows:Estimated residual value: £100Estimated useful life: 5 yearsDepreciation methods:Company A: straight-line methodCompany B: accelerated method (assume that 50% of the depreciable amount is depreciated in year1, and the remaining balance is depreciated equally during the subsequent years) Critically discuss the differences in the timing of the recognition of the depreciation expense foreach method. Under what circumstances do you think a manager could choose to use the…Consider two hypothetical companies: A and B. At the beginning of year 1, each company buys anidentical piece of equipment for £2,100. The two companies have the same assumptions about theequipment useful life, estimated residual value, and productive capacity. The annual production ofeach company is the same. However, each company uses a different method of depreciation. Asdisclosed in each company’s notes to the financial statements, each company’s depreciation method,assumptions, and production are as follows:Estimated residual value: £100Estimated useful life: 5 yearsDepreciation methods:Company A: straight-line methodCompany B: accelerated method (assume that 50% of the depreciable amount is depreciated in year1, and the remaining balance is depreciated equally during the subsequent years) a) Calculate, for each company, the beginning and ending net book value, the annual depreciationexpense, and accumulated year-end depreciation for the equipment throughout its useful life
- In Year 1, Manny Company purchased a piece of equipment with a cost of 76000 and a useful life of 5 years. At the beginning of Year 3, the company has determined the following: Expected future cash flows $42000 PV of expected future cash flows $37000 Net selling price $38000 Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS? What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS? What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?An item of plant and equipment cost £15,000 at the start of Year 3. Its estimated residual value is £3,000 and it has an estimated useful life of 4 years. It is sold at the end of Year 4 for £7,000. A full year's depreciation is charged in the year of acquisition and in the year of disposal. Which of the following is correct? a) The depreciation on a straight-line basis is £3,750 per annum; the loss on disposal at the end of Year 4 is £500 b) The depreciation on a straight-line basis is £3,750 per annum; the gain on disposal at the end of Year 4 is £500 c) The depreciation on a straight-line basis is £3,000 per annum; the loss on disposal at the end of Year 4 is £2,000 d) The depreciation on a straight-line basis is £3,000 per annum; the gain on disposal at the end of Year 4 is £2,000A certain machine has a first cost of P 14,000, a ife of 8 years with a salvage value of P 10,000 at the end of its useful life. The total depreciation at the end of 3rd year of this machine is P 80,937.50. What method of depreciation is used in the calculation? A. Straight line methodB. Declining Balance method C. Double declining balanced method D. SYD method
- Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods E straight-line E diminishing balance (depreciation rate has been calculated as 31%) B units of production (assume the van was driven 78,000 kilometres during the financial year) b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balance method. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straight-line method.Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods by straight-line, diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 78,000 kilometres during the financial year) b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balance methd and Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method.Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods 1 straight-line 2 diminishing balance (depreciation rate has been calculated as 31%) 3 units of production (assume the van was driven 78,000 kilometres during the financial year) b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balance method. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method. plz answer the questions by using appropriate formulas where needed.