Business, 26.11.2019 04:31 safelix1260

Ahigh-precision programmable router for shaping fur- niture components is purchased by henredon for $190,000. it is expected to last 12 years and have a salvage value of $5,000. calculate the depreciation deduction and book value for each year. a. use straight-line depreciation. b. use declining balance depreciation using a rate that ensures the book value equals the salvage .

Answers: 1

Show answers

Answers

Answer from: CourtGard

a) Annual depreciation = $15,416.67

b) Depreciation rate = 0.2615

Explanation:

Data provided in the question:

Cost of router = $190,000

Useful life = 12 years

Salvage value = $5,000

Now,

a) Using straight-line depreciation

Annual depreciation = $\frac{\textup{Cost - Salvage value}}{\textup{Useful life}}$

= $\frac{\$190,000-\$5,000}{\textup{12}}$

= $15,416.67

Hence,

Year Depreciation Book value

1 $15,416.67 $190,000 - $15,416.67 = $174,583.33

2 $15,416.67 $174,583.33 - $15,416.67 = $159166.66

3 $15,416.67 $159166.66 - $15,416.67 = $143749.99

4 $15,416.67 $143749.99 - $15,416.67 = $128333.32

5 $15,416.67 $128333.32 - $15,416.67 = $112916.65

6 $15,416.67 $112916.65 - $15,416.67 = $97499.98

7 $15,416.67 $97499.98 - $15,416.67 = $82083.31

8 $15,416.67 $82083.31 - $15,416.67 = $66666.64

9 $15,416.67 $66666.64 - $15,416.67 = $51249.97

10 $15,416.67 $51249.97 - $15,416.67 = $35833.3

11 $15,416.67 $35833.3 - $15,416.67 = $20416.63

12 $15,416.67 $20416.63 - $15,416.67 = $4999.96

b) using declining balance depreciation

Depreciation rate = $1 - (\frac{salvage}{Cost})^{\frac{1}{n}}$

here, n = useful life

thus,

Depreciation rate = $1 - (\frac{5,000}{190,000})^{\frac{1}{12}}$

= 0.2615

Therefore,

Year Depreciation Book value

1 0.2615 × $190,000 $190,000 - $49685 = $140315

2 0.2615 × $140315 $140315 - $36692.3725 = $103622.62

3 0.2615 × $103622.6 $103622.62 - $27097.30 = $76525.32

4 0.2615 × $76525.32 $76525.32 - $20011.37 = $56513.95

5 0.2615 × $56513.95 $56513.95 - $14778.39 = $41735.56

6 0.2615 × $41735.56 $41735.56 - $10913.84 = $30821.72

7 0.2615 × $30821.72 $30821.72 - $8059.87 = $22761.85

8 0.2615 × $22761.85 $22761.85 - $5952.22 = $16809.63

9 0.2615 × $16809.63 $16809.63 - $4396.22 = $12413.41

10 0.2615 × $12413.41 $12413.41 - $3246.10 = $9167.31

11 0.2615 × $9167.31 $9167.31 - $2397.25 = $6770.06

12 0.2615 × $6770.06 $6770.06 - $1770.37 = $4999.69

Answer from: Quest

Typically, los inflation is a sign of a healthy economy because it results from a steady rise in demand.

Answer from: Quest

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Another question on Business

Business, 21.06.2019 20:00

Which is not an example of a cyclical company? a) airlines b) hotel industry c) medical d) theme parks

Answers: 1

Answer

Business, 21.06.2019 20:30

Max fischer is a beekeeper. his annual group insurance costs 11,700. his employer pays 60% of the cost. how much does max pay semimonthly for it?

Answers: 1

Answer

Business, 21.06.2019 23:30

Minneapolis federal reserve bank economist edward prescott estimates the elasticity of the u.s. labor supply to be 3. given this elasticity, what would be the impact of funding the social security program with tax increases on the number of hours worked and on the amount of taxes collected to fund social security?

Answers: 2

Answer

Business, 22.06.2019 11:10

Yowell company granted a sales discount of $360 to a customer when it collected the amount due on account. yowell uses the perpetual inventory system. which of the following answers reflects the effects on the financial statements of only the discount? assets = liab. + equity rev. − exp. = net inc. cash flow a. (360 ) = na + (360 ) (360 ) − na = (360 ) (360 ) oa b. na = (360 ) + 360 360 − na = 360 na c. (360 ) = na + (360 ) (360 ) − na = (360 ) na d. na = (360 ) + 360 360 − na = 360 na

Answers: 1

Answer

You know the right answer?

Ahigh-precision programmable router for shaping fur- niture components is purchased by henredon for...

Questions