Questions
[11] A piece of equipment was acquired for a cost of $400,000. It had an estimated...

[11] A piece of equipment was acquired for a cost of $400,000. It had an estimated useful life of 5
years. The estimated salvage value is $40,000. The company controller uses a double declining
balance method of accelerated depreciation. The piece of equipment was purchased on Oct. 1, 2014.  
The company is generating projections for the next few years and has asked you to show him what
depreciation expense, accumulated depreciation, and book value of this piece of equipment will be
over the life of the asset. SHOW YOUR WORK. You must show the depreciation expense for
each year, the accumulated depreciation at the end of each year, and the book value at the end of
each year.

In: Accounting

Discusses the cost to Nike in dollars and in reputation for their treatment of workers overseas....

Discusses the cost to Nike in dollars and in reputation for their treatment of workers overseas. Include answers to the questions:1. What was the cost to correct the worker issues including wages, housing, working conditions and other? 2. What did Nike do to correct the worker problems? 3. What was the impact to Nike’s reputation?

In: Economics

marginal revenue equals marginal cost to maximize total revenue

marginal revenue equals marginal cost to maximize total revenue

In: Economics

In 1993, Nash Company completed the construction of a building at a cost of $2,040,000 and...

In 1993, Nash Company completed the construction of a building at a cost of $2,040,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $59,200 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $510,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $20,400.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

Annual depreciation from 1994 through 2003

$

/ yr.

Compute the annual depreciation that would have been charged from 2004 through 2022.

Annual depreciation from 2004 through 2021

$

/ yr.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

Annual depreciation expense—building

$

In: Accounting

In 1993, Windsor Company completed the construction of a building at a cost of $2,160,000 and...

In 1993, Windsor Company completed the construction of a building at a cost of $2,160,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $540,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,600.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

Annual depreciation from 1994 through 2003

$

/ yr.

Compute the annual depreciation that would have been charged from 2004 through 2022.

Annual depreciation from 2004 through 2021

$

/ yr.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

Annual depreciation expense—building

$ ?

In: Accounting

In 1993, Windsor Company completed the construction of a building at a cost of $2,160,000 and...

In 1993, Windsor Company completed the construction of a building at a cost of $2,160,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $540,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,600. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.
Annual depreciation from 1994 through 2003 $ / yr.

SHOW LIST OF ACCOUNTS

SHOW ANSWER

LINK TO TEXT

LINK TO TEXT

Your answer is correct.
Compute the annual depreciation that would have been charged from 2004 through 2022.
Annual depreciation from 2004 through 2021 $ / yr.

SHOW LIST OF ACCOUNTS

SHOW ANSWER

LINK TO TEXT

LINK TO TEXT

Your answer is correct.
Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

SHOW ANSWER

LINK TO TEXT

LINK TO TEXT

Your answer is incorrect. Try again.
Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)
Annual depreciation expense—building $
Click if you would like to Show Work for this question:

Open Show Work

In: Accounting

For product A, a firm has an annual holding cost that is 20% of the item...

For product A, a firm has an annual holding cost that is 20% of the item price, an ordering cost of $120 per order, and annual demand of 15,000 units. The product’s discount schedule is given in the following table.

Order Size

Price Per Unit

1 – 250

$30.00

251 – 500

$28.00

501 – 799

$26.00

800 or more

$25.00

-Determine the most cost-effective ordering quantity
-What is the total cost for the order quantity determined in 1).

-Describe inventory policy

In: Accounting

You are a manager of a monopoly, and your demand and cost functions are given by...

You are a manager of a monopoly, and your demand and cost functions are given by P =220 -2Q and C(Q) = 2000 + 10 Q2 What Price maximizes your profit

In: Economics

people in the aerospace industry believe the cost of a space project is a function of...

people in the aerospace industry believe the cost of a space project is a function of the mass of the major object being sent into space. use the following data to develop a regression model to predict the cost of a space project by the mass of the space object. determine r^2 and se. weight= 1.897, 3.019, 0.453, 0.970, 1.058, 2.100, 2.389. cost = 53.6, 183.9, 6.4, 23.5, 33.4, 110.4, 104.6. y= + x r^2= se=

In: Statistics and Probability

An important application of regression analysis in accounting is in the estimation of cost. By collecting...

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

Production Volume (units) Total Cost ($)
400 5,000
450 6,000
550 6,400
600 6,900
700 7,400
750 8,000
  1. Compute b1 and b0 (to 1 decimal).
    b1  
    b0  

    Complete the estimated regression equation (to 1 decimal).
    ŷ =  +  x
  2. What is the variable cost per unit produced (to 1 decimal)?

  3. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.
    r2 =  

    What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
    %
  4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
    $

In: Advanced Math