What is the impact on financial statements for fiscal year

Assignment Help Accounting Basics

Reference no: EM13135270

A company purchased $150,000 worth of production equipment on April 1. Management decided to depreciate the equipment over four years using straight line depreciation. The salvage value is $30,000. The company uses a calendar year as its fiscal year.

What is the impact on the financial statements for fiscal year 2 from this purchase?

A. Accumulated depreciation will be recorded as $75,000.
B. Depreciation expense will be $37,500.
C. Accumulated depreciation will be recorded as $60,000.
D. Depreciation expense will be $30,000.

Reference no: EM13135270

Questions Cloud

Information about surface area and volume : Solve the following word problem, you will need to know that a cylinder of radius r and height h has volume V = Pi r^2 h. Also, a circle of radius r has area A = Pi r^2 and circumference C = 2 Pi r.

Calculate the ph : Furoic acid, HC5H3O3, has a Ka value of 6.76 10-4 at 25C. Calculate the pH at 25C for a solution formed by mixing 28.0 mL of 0.260 M HC5H3O3 and 23.0 mL of 0.21 M NaC5H3O3 and diluting the total volume to 125 mL.

Accounting-current and future periods : Which type of accounting change should always be accounted for in current and future periods?

Steam enters the turbine of a simple vapor power plant : Steam enters the turbine of a simple vapor power plant with a pressure of 160 bar and a temp of 560 C and expands adiabatically to 0.08 bar

What is the impact on financial statements for fiscal year : A company purchased $150,000 worth of production equipment on April 1. Management decided to depreciate the equipment over four years using straight line depreciation. The salvage value is $30,000. The company uses a calendar year as its fiscal ye..

Define kinetics of particles -newton''s second law : Kinetics of Particles : Newton's Second Law, Determine the maximum theoretical speed that may be achieved over a distance of 50 m by a car starting from rest

Basics of change in accounting principle : Which of the following is accounted for as a change in accounting principle?

Defining elements of realism : .Describe in a 2-3 page paper the ways specific defining elements of realism and/or naturalism manifest themselves in Jack London's To Build A Fire.

Cross-sectional area and perimeter of drain : Water flows in a 400mm diameter drain to a depth of 150mm. Calculate the wetted perimeter of the drain and the cross sectional area of the water

User Account

All Pages