User Account

All Pages

Determine the amount of depreciation expense

Assignment Help Accounting Basics
Reference no: EM131790464

Problem: Air Pack Company purchased packaging equipment on January 3, 2006 for $90,000. The equipment was expected to have a useful life of three years, or 21,000 operating hours, and a residual value of $6,000. The equipment was used for 8,000 hours during 2006, 7,500 hours in 2007, and 5,500 hours in 2008.

Instructions: Determine the amount of depreciation expense for the years ended December 31, 2006, 2007 and 2008, by (a) the straight-line method, (b) the units-of-production and (c) the double- declining -balance method. Also determine the total depreciation expenses for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amount.

Reference no: EM131790464

Questions Cloud

Calculate the irr for both projects : Using a cost of capital of 14%, which project should be taken based on the NPV amounts? Calculate the IRR for both projects. Based on the IRR amounts, which
Explain the concept of gdp gap : Why would FED engage in such an activity? Use the concept of GDP Gap (recession or surplus) and explain whether they are engaging in expansionary.
Find the z-score that gives a left area : Inverse Normal, Standard Assume a standard Normal distribution. Draw a separate, well-labeled Normal curve for each part.
Determine what annual rate of interest : Use the IRR function to determine what annual rate of interest (APR) GEICO is charging. Hint: Let time zero be one month before coverage starts
Determine the amount of depreciation expense : Determine the amount of depreciation expense for the years ended December 31, 2006, 2007 and 2008, by (a) the straight-line method
What score does an applicant need : What score does an applicant need? Include a well-labeled Normal curve as part of your answer. See page 317 for guidance.
What is your estimate of the stocks current price : The company's stock has a beta of 1.4, the risk-free rate is 2.5%, and the market risk premium is 9%. What is your estimate of the stock's current price
What was the annual amount of depreciation : What was the annual amount of depreciation for the years 2005, 2006, and 2007, using the straight-line method of depreciation
What is the role of beta in capm : What is the role of beta in CAPM? Explain. What is forecasting error?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Identify principle that best matches the situation

Michael McNamee is the proprietor of a property management? company, Apartment?- Identify the principle or assumption that best matches the? situation:

  Entire production at the prevailing market price

Hogan Farms produced 1,600,000 pounds of cotton during the 2015 season. Hogan sells all of its cotton to Ott Co., which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market pri..

  Hyde owns several small office buildings in which he rents

jack l. hyde owns several small office buildings in which he rents space to doctors dentists lawyers and other

  Range for important measures

Ask a manger in your organization if they would prefer a single point estimate or a range for important measures, and why? Please share what they say.

  Dorian company produces and sells a single product the

dorian company produces and sells a single product. the product sells for 60 per unit and has a contribution margin

  Fifo cost flow assumption

Which of the following is not a disadvantage of using the FIFO cost flow assumption?

  In recent years juresic transportation purchased three used

in recent years juresic transportation purchased three used buses. because of frequent turnover in the accounting

  May co inadvertently overstates its 2009 ending inventory

may co inadvertently overstates its 2009 ending inventory by 5000 and understates 2010 inventory by 5000. which of the

  Stacy company issued five-year 10 bonds with a face value

stacy company issued five-year 10 bonds with a face value of 10000 on january 1 2010. interest is paid annually on

  One activity within the value chain is research and develop

Which of the following is not an example of a common activity in an AIS?

  Accounting increases a students preparedness to understand

accounting increases a students preparedness to understand complex business concepts and the rationale managers use to

  Compute revenues expenses and income for each year

Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd