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Effectus [21]
2 years ago
8

Holman company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciate

d at $15,000 per year using the straight-line depreciation method, and only prepares adjustments at year-end. the adjusting entry needed to record annual depreciation is:
Business
1 answer:
brilliants [131]2 years ago
7 0
Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period. 
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be 
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation       (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset. 
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Tammy can buy an asset this year for $1,000. She is expecting to sell it next year for $1,050. What is the asset’s anticipated p
prisoha [69]

Answer:

The asset’s anticipated percentage rate of return is 5%

Explanation:

Rate of return is the annual return that an investor earns on an Initial investment in an asset.

RatReturn on Asset = Expected selling price - Initial Purchase price

Return on Asset = $1,050 - $1,000

Return on Asset = $50

Rate of return = Return on Asset / Initial Purchase price = $50 / $1,000 = 0.05 = 5%

6 0
2 years ago
Determinant Company is a​ price-taker and uses a​ target-pricing approach. Refer to the following​ information: Production volum
Maru [420]

Answer: good day!

Explanation: you’re awesome

3 0
2 years ago
Lisa is choosing between three alternatives: a) working at her job that pays 60 dollars; b) writing a term paper which she value
Mkey [24]

Answer:

c. 80 dollars.

Explanation:

Opportunity cost represents the next best alternative missed.  It is the forfeited benefits arising from choosing one option over the others. Opportunity cost is expressed as a value or the worth of the forgone alternative.

Lisa's opportunity cost is $ 80.  She has valued going out with her friend at $ 80, which is the highest value amongst her three choices. Since she can not engage in all the three activities at the same time, the next best alternative to writing her exam is the opportunity cost.

7 0
2 years ago
Maggie bought 20 shares of Google at the close price of $472.68. She bought
ioda

Answer:

C. $1,060

Explanation:

First transaction

20 shares of Google at close price of $472.68

= 20 × $472.68

= $9,453.6

Second transaction, a year later;

she bought 20 shares at close price of $491.32

= 20 × $491.32

= $9,826.4

Third transaction. Two years later, she sold all her shares;

In total 3 transactions, Maggie's broker charge will be;

$50 × 3 = $150

The last transaction will get($512.25 per share for 20 + 20 = 40 shares)

40 × $512.25 = $20,490

Maggie will get $20,490 less $150 due to the brokerage's charge.

$20,490 - $150 = $20,340

To get how much Maggie makes,

= Total value of third transaction (Sales of shares) - (Total value of first transaction + Total value of Second transaction)

= $20,340 - ($9,453.6 + $9,826.4)

= $1,060

5 0
2 years ago
A brick mason was hired by a builder under a written one-year contract, at an annual salary of $45,000, with employment to begin
nirvana33 [79]

Because he had a contract with the builder, the mason would be able to get the original contract price of $45,000.

8 0
2 years ago
Read 2 more answers
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