Business, 24.11.2020 21:00, von1144

The cost of a piece of equipment is $80,000; it has a 5 year life, and an estimated salvage value of $5,000. Required:
a. What is the amount of depreciation expense for the first full year the company owns the equipment if the company adopts the straight-line method?
b. What is the journal entry the company would make to record depreciation expense?
c. What is the book value of the equipment after it has been owned for 1 full year (hint use part a)?
d. What is the amount of depreciation for the first year if the company did not purchase the equipment until July 1st and uses the straight-line method?
e. What is the book value of the equipment after it has been owned for 1/2 years?

Answers: 2

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a. What is the amount of depreciation expense for the first full year the company owns the equipment if the company adopts the straight-line method?

depreciable value = $80,000 - $5,000 = $75,000

depreciation expense per year = $75,000 / 5 years = $15,000

b. What is the journal entry the company would make to record depreciation expense?

December 31, 202x, depreciation expense

Dr Depreciation expense 15,000

Cr Accumulated depreciation - equipment 15,000

c. What is the book value of the equipment after it has been owned for 1 full year (hint use part a)?

book value = purchase price - accumulated depreciation = $80,000 - $15,000 = $65,000

d. What is the amount of depreciation for the first year if the company did not purchase the equipment until July 1st and uses the straight-line method?

depreciation expense = $15,000 x 1/2 = $7,500

e. What is the book value of the equipment after it has been owned for 1/2 years?

book value = $80,000 - $7,500 = $72,500

answered: Guest

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

answered: Guest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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The cost of a piece of equipment is $80,000; it has a 5 year life, and an estimated salvage value of...