Business, 19.11.2019 04:31 gracieorman4

Joe's quik shop bought equipment for $25,000 on january 1, 2006. joe estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. on january 1, 2007, joe decides that the business will use the equipment for a total of 6 years. what is the revised depreciation expense for 2007? a. $4,000b. $2,000c. $3,333d. $5,000

Answers: 1

Show answers

Answers

Answer from: frankgore8496

option (a) 4,000

Explanation:

Data provided in the question:

cost of the equipment bought by Joe = $25,000

Estimated useful life = 5 years

Salvage value = $0

therefore,

The annual depreciation = $\frac{\textup{Cost-salvage value}}{\textup{Estimated useful life}}$

$\frac{\$25,000-$0}{5}$

= $5,000 per year

Thus,

Book value on January 1, 2007

= Cost on January 1, 2006 - Depreciation till January 1, 2007

= $25,000 - ( $5,000 × 1 )

= $20,000

Now,

The revised useful life is 6 years on January 1, 2007 but the 1 year has already been over

Thus,

remaining useful life = 6 - 1 = 5 years

Thus,

The revised depreciation = $\frac{\textup{Book value -salvage value}}{\textup{Remaining useful life}}$

$\frac{\$20,000-$0}{5}$

= $4,000 per year

Hence,

The correct answer is option (a) 4,000

Answer from: Quest

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

Answer from: Quest

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

Other questions on the subject: Business

Business, 22.06.2019 03:20, emilyplays474

Look at this check register. calculate the current balance. check date transaction (+) deposit balance 5/1 5/3 $82.92 debit 8.00 78.24 005 monthly fee phone bill paycheck 1 125.00 5/15 5/17 5/20 atm 40.00 56.50 006 t ennis lessons the current balance is?

Answers: 1

continue

Business, 22.06.2019 05:40, Jenan25

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Answers: 1

continue

Business, 22.06.2019 14:30, dabicvietboi

Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.

Answers: 1

continue

Business, 22.06.2019 19:00, makaylahunt

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u. s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a:

Answers: 3

continue

You know the right answer?

Joe's quik shop bought equipment for $25,000 on january 1, 2006. joe estimated the useful life to be...