Answer:
Using the units-of-production method, the amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2018 = $ 228899
Explanation:
Given
Acquisition Cost of Equipment = $ 517,000+ $ 16700= $ 533,700
Total units of production= 29,700 hours
Residual Value = $ 6700
Units of Production= 12,900 hours
Formula:
Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production
Depreciation per unit= ($ 533,700 - 6700/ 29700)*12900
Depreciation per unit=($ 52,7000 / 29700)*12900
Depreciation per unit=( 17.744)*12900
Depreciation per unit= 228898.98= $ 228899
As units of production are given we do not need to calculate it for half year. The depreciation is calculated for units of production.
Elite Electronics, Incorporated
JOURNAL ENTRY :
Aug 31
Dr Allowance for Doubtful Accounts a/c 300
Cr Account Receivable. a/c 300
( To record write off Account Receivable)
Dec 15
Dr Account Receivable a/c 300
Cr Allowance for Doubtful Accounts 300
( To record reinstate the accounts receivable)
Dec 15
DR Cash a/c 300
CR Account Receivable a/c 300
( To record Payment received)
Answer:
a. What would be the value of a savings account started with $700, earning 4 percent (compounded annually) after 10 years?
$700 * 1.480 = $1,036.00
b. Brenda Young desires to have $15,000 eight years from now for her daughter’s college fund. If she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.
$15,000 * 0.627 = $9,405
c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent (compounded annually)?
$1,800 * 113.28 = $203,904
Answer: Reduction of imports will move spending on another national output to spending on domestic output
Explanation:
Artificial tree barrier such as tariff and import quotas reduce unemployment in one US industry and has another industry increase it's productivity due to this effect. Reduction of imports will move spending on another national output to spending on domestic output, this would cause the domestic output and employment to rise
