Details of this Paper

Accounting Questions Revised

Description

solution


Question

1. Is it necessary for a business to use the same method of computing depreciation (a) for all classes of depreciable assets, (b) in the financial statements and in determining income taxes? Explain your answer.;2. What is depreciation and what are some of the methods we use to claculate it? Provide examples;3. In what financial statement are plant assets reported and hiow are they presented? Should we classify them as short term or long term assets?;4. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?;5. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?;6. If a fixed asset, such as a computer, were purchased on January 1st for $1,950 with an estimated life of 3 years and a salvage or residual value of $150, what is the journal entry for monthly expense under straight-line depreciation? Explain your answer.

 

Paper#76675 | Written in 18-Jul-2015

Price : $22
SiteLock