Ask Question
BusinessBusiness
27 April, 17:47

Computer equipment was acquired at the beginning of the year at a cost of $54,500. It had an estimated residual value of $4,100 and an estimated useful life of five years. Determine the (a) depreciable cost, (b) straight-line rate, and (c) annual straight-line depreciation.

+2
Answers (1)
  1. 27 April, 18:07
    0
    a.$50,400

    b. 20% depreciation per year

    c. $10,080 per year

    Explanation:

    a) The depreciable cost is the total purchase cost minus the residual value:

    $54,500-$4,100 = $50,400

    b) The straight - line rate is the rate of depreciation per year. Since here the usefull life is 5 year, the depreciation rate is 1/5 per year = 0.2 per year

    = 20 % per year

    c) The annual straight-line depreciation is the depreciable cost multiply by the depreciation rate:

    Annual straight-line depreciation = 0.2*50,400 = $10,080
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Computer equipment was acquired at the beginning of the year at a cost of $54,500. It had an estimated residual value of $4,100 and an ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Alfonso began the year with a tax basis in his partnership interest of $30,000. His share of partnership debt at the beginning and end of the year consists of $4,000 of recourse debt and $6,000 of nonrecourse debt.
Answers (1)
What is the different between economic profit and accounting profit
Answers (1)
Kaiser Air is considering a new flight between Atlanta and Tampa. The average fare per seat is $400. The fixed costs for the flight, which include crew salaries, operating costs, and aircraft depreciation, total $32,000.
Answers (1)
A similarity between e-commerce and traditional commerce is that both: a. concentrate on selling products to generate profit. b. use the same mode of service to cater to consumers. c. require a physical store to sell consumer goods. d.
Answers (1)
A fire has destroyed many of the financial records at Anderson Associates. You are assigned to piece together information to prepare a financial report. You have found that the firm's return on equity is 12% and its equity multiplier is 1.6667.
Answers (1)
New Questions in Business
Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:
Answers (1)
The following are exogenous (not directly affected by income) : G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 What is the equilibrium level of GDP? State to ONE decimal place
Answers (1)
Why does an unsecured loan have a higher interest rate than a secured loan? The bank bears all the risk of the loan. The bank charges more for poor credit scores. The bank bases higher interest rates on market conditions.
Answers (1)
Starbucks has been in business for over 40 years and for most of that period has been quite successful. they have a portfolio of alliances and partnerships that supports and extends their premium coffee business.
Answers (1)
The following amounts were reported on the December 31, 2019, balance sheet: Cash $ 16,000 Accounts receivable 44,000 Common stock 80,000 Wages payable 10,000 Retained earnings 160,000 Land 40,000 Accounts payable 30,000 Bonds payable 240,000
Answers (1)
Home » Business » Computer equipment was acquired at the beginning of the year at a cost of $54,500. It had an estimated residual value of $4,100 and an estimated useful life of five years.
Sign Up Forgot Password?