5. A machine with a cost of $61,643.00 has an estimated residual value of $4,531

Question

5. A machine with a cost of $61,643.00 has an estimated residual value of $4,531.00 and an estimated life of 3 years or 18,843 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 3,157 hours? Select the correct answer a) $38,074.67 b) $10,327.81 c) $19,037.33 d) S9,568.68 6. Equipment with a cost of $141,390.00 has an estimated residual value of $7,803.00 and an estimated life of 5 years or 16,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,667 hours? Select the correct answer. a) S36.43 b) $5.00 c) $30,616.47 d) $26,717.40 7. An employee receives an hourly wage rate of $23, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $323; social security tax rate, 6.0%; and Medicare tax rate, 1.5% on all earnings, what is the gross pay for the employee? Select the correct answer a) $2,070 b) $1,035 c) S1,093 d) $1,553

Explanation / Answer

5) ANSWER = D

Dep of second year = (cost - residual value) / total hours* hours used in second year

= (61643 - 4531) / 18843 * 3157 = 9568.68

6) Answer = D

Depreciation of first year = (cost - residual value) / total life

= 141390 - 7803 / 5 = 26717.4

7) Answer = C

Gross pay = (40 hours * 23 ) + ( 5hours * 23 * 1.5 times) = 1092.5

8) Answer = A

   Gross pay = (40 hours * 22 ) + ( 2 hours * 22 * 1.5 times) = 946

LESS :- FICA TAX = (7.5%) = 70.95

less - federal income tax withheld = 317

Net Pay = 558.05 $

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