Alias Enterprises purchased a depreciable asset for $27,000 on April 1, Year 1.
ID: 2484890 • Letter: A
Question
Alias Enterprises purchased a depreciable asset for $27,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? a.$5,000 b.$20,000 c.$16,500 d. $6,000 e.$5,000
Bristow Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,800, Bristow Enterprises should recognize depreciation expense in Year 2 in the amount of:
$5,666.67
$26,066.67
$7,750.00
$6,800.00
$27,200.00
Sidney Company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $61,000; the land at $45,800, and the parking lot at $18,200. Land should be recorded in the accounting records with an allocated cost of:
$0.
$45,800.
$36,640.
$100,000.
$42,640.
Dixon Company purchased a system on January 1 for $5,500. This system has a useful life of 5 years and a salvage value of $450. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?
$1,010.
$2,200.
$2,020.
$1,256.
$1,320.
Stewart company purchased a weaving machine for $231,450. The machine has a useful life of 8 years and a residual value of $12,500. It is estimated that the machine could produce 755,000 bolts of woven fabric over its useful life. In the first year, 107,500 bolts were produced. In the second year, production increased to 111,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,500 of an employee's pay. Assume that an employee earned total wages of $12,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages?
Sue, an employee, earned $5,100 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:
Tippon Company is required by law to collect and remit sales taxes to the state. If Tippon has $4,500 of cash sales that are subject to an 6% sales tax, what is the journal entry to record the cash sales?
Sheldon and Smart are forming a partnership. Sheldon is investing a building that has a market value of $91,000. However, the building carries a $45,000 mortgage that will be assumed by the partnership. Smart is investing $42,000 cash. The balance of Sheldon's Capital account will be:
Bristow Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,800, Bristow Enterprises should recognize depreciation expense in Year 2 in the amount of:
Explanation / Answer
1)
Annual depreciation = (27000 – 3000) / 4 = $6000
Depreciation for year 1 (for 9 months) = $6000 x (9/12) = $4500
Depreciation for each of year 2 and 3 = $6000
Accumulated depreciation at the end of year 3 = 4500 + 6000 + 6000 = $16500
2)
Annual depreciation = (31000 – 3800) / 4 = $6800
Depreciation expense that should be recognized for year 2 = $6800
3)
Total appraised value of the assets = 61000 + 45800+ 18200 = $125000
Land should be recorded in the accounting records with an allocated cost of:
= $100000 x (45800/125000) = $36640
4)
Double declining rate of depreciation = (1/5) * 2 = 40%
Depreciation for the first year = 5500 x 40% = $2200
Depreciation for the second year = (5500-2200) * 40% = $1320
5)
Rate of depreciation = $(231450 – 12500) / 755000 bottles = $0.29/bottle
Depreciation for the second year = 111500 bottles x $0.29/bottle = $32335
6)
0.8% x $6500 + 5.4% x $6500 = $403
7)
FICA and Medicare tax is a contributory one. Means the employer has to pay the same amount of tax as is deducted from the employee’s pay.
Employer’s total FICA liability for this employee = 6.2% * $5100 + 1.45% * $5100 = $390.15
8)
Sale tax = 6% * $4500 = $270
Answer:
Debit Cash $4,770; credit Sales $4,500; credit Sales Taxes Payable $270
9) Answer: $46000
market value of building – mortgage amount = $91000 - $45000 = $46000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.