User Account

All Pages

What is the cost of the equipment to bennetts ltd

Assignment Help Accounting Basics
Reference no: EM133004606

Problem - Bennetts Ltd purchased equipment 1 July 2017. The equipment cost $36,000 and the installation of the equipment costed an additional $8,000. The equipment would have a useful life of ten (10} years and a salvage value of $4,000.

Required -

a. What is the cost of the equipment to Bennetts Ltd?

b. What would be the amount of accumulated depreciation and the carrying value of the asset at the 30 June 2020, if we were to use the straight-line depreciation method?

c. What would be the amount of accumulated depreciation and the carrying value of the asset at the 30 June 2020, if we were to use the diminishing balance method of depreciation?

d. If we sold the vehicle for $30,000 at the 30 June 2020 what profit or loss would occur under b. and c.?

e. What does the residual amount represent? (Maximum 200 words).

Reference no: EM133004606

Questions Cloud

Explain margin lending : Explain margin lending, including the lender's contractual rights.
List several specific factors that support the view : List several specific factors that support this view. Many auditors consider the substantiation of the figure for inventory to be a more difficult
What will the dividend be 5 years from now : ABC Inc. just announced it is increasing its annual dividend to $2.00 next year and establishing a policy whereby the dividend will increase by 3 percent annual
Does the south executive statement suggest : What purpose, if any, is served by this audit procedure? -Does the South executive's statement suggest some misunderstanding of audit objectives? Explain.
What is the cost of the equipment to bennetts ltd : The equipment would have a useful life of ten (10} years and a salvage value of $4,000. What is the cost of the equipment to Bennetts Ltd
What the adjusting journal entry to record bad debts expense : What the adjusting journal entry to record bad debts expense will be for?An aging analysis of accounts receivable indicates that $108,000 is expected
Security proposal of benedicta : What effect does using the security proposal of Benedicta have on her rate of return? How much of the company does she own?
What the carrying amount of accounts receivable : An aging analysis of accounts receivable. What the carrying amount (net realizable value)of accounts receivable ( after adjustment ) on December 31 will be
Expected ethical behaviors of corporate officers : As an investor; Discuss your views related to the expected ethical behaviors of corporate officers in financial management related to Martha Stewart case.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd