If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be (D) $31,000.
<h3>
What is depreciation?</h3>
- Depreciation in accounting refers to two aspects of the same concept: first, the actual decrease in fair value of an asset, such as the decrease in value of factory equipment each year as it is used and worn, and second, the allocation of the original cost of the assets to periods in which the assets are used in accounting statements (depreciation with the matching principle).
- Thus, depreciation is the loss in asset value and the mechanism used to reallocate, or "write down," the cost of a tangible asset (such as equipment) throughout its usable life period.
To find If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021:
- Annual depreciation expense = (Cost - Salvage value) ÷ 10
- = (380,000 - 70,000) ÷ 10
- = 310,000 ÷ 10
- = $31,000
Therefore, if the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be (D) $31,000.
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The correct question is given below:
A factory machine was purchased for $380000 on January 1, 2021. It was estimated that it would have a $70000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 37000 hours in the 5 years. The company ran the machine for 3700 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be
(A) $62000.
(B) $70000.
(C) $38000.
(D) $31000.
Answer:
$90,000
Explanation:
As per the historical cost principle, the assets should be recognized at the purchase price or the historical cost. In this, no other cost should be recognized such as assessed value, land improvements, etc
Since in the given question the Snap Repair Service accepted the seller counter offer i.e. $90,000 so the same is to be presented in the financial statements
hence, the land should be recorded at $90,000
Answer:
total value of ending WIP inventory: 8,400
Explanation:
unit material cost: 5.00 dollar
ending work in proces inventory
materials equivalent units:
1,500 x 100% = 1,500
as the mateirals are added entire at the beginning of the process:
material cost: 1,500 x 5 = 7,500
conversion
1,500 x 20% = 300
300 x 3.00 = 900
total value of ending WIP inventory:
materials 7,500
conversion 900
total 8,400
The typical time frame for decisions at the strategic level is a strategic decision.
The strategic level makes a specialty of defining and assisting countrywide policy and relates immediately to the outcome of a war or other battle as an entire. generally, cutting-edge wars and conflicts are gained or lost at this level in place of at the operational or tactical levels.
Strategy can be formulated at three degrees, particularly, at the company level, the business level, and the functional degree. at the company degree, strategy is formulated for your organization as a whole. The corporate method offers decisions associated with various enterprise regions in which the firm operates and competes.
As an example, constructing on the diversification instance, the purposeful level strategies that aid that commercial enterprise stage method is probably: R&D: redesign product. advertising: put into effect a new advertising plan. manufacturing: Make adjustments to present infrastructure.
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Answer:
<u>Agence law.</u>
Explanation:
Agency law can be defined as an area of commercial law that deals with the relationship between a party that has legal authority to act in place of another, called an agent. The agent can be an individual, or some partnership or corporation. The agent deals with contractual, almost contractual and non-contractual fiduciary relationships.
The powers of the agency's law are to deal with contractual, almost contractual and non-contractual fiduciary relationships involving an agent.
