Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question #1 Bob Company purchased equipment on January 1, 2011 for $80,000. It is estimated that the equipment will have a $8,000 salvage value at

Question #1

Bob Company purchased equipment on January 1, 2011 for $80,000. It is estimated that the equipment will have a $8,000 salvage value at the end of its 4-year useful life. It is also estimated that the equipment will produce 288,000 units over its 4-year life.

Respond to the following independent questions in the space provided for each question.

1. Compute the amount of depreciation expense for the year ended December 31, 2011, using

the straight-line method of depreciation.

2. If 44,000 units of product are produced in 2011 and 88,000 units are produced in 2012, what

is the book value of the equipment at December 31, 2012? The company uses the units-of-

activity depreciation method.

3. If the company uses the double-declining-balance-method of depreciation, what is the balance

of the Accumulated Depreciation-Equipment account at December 31, 2013?

Question #2

Bob earns a salary of $5,000 per month during the year. FICA taxes are 8% on the first $100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.2% on the $7,000. During the year, $12,800 was withheld for federal income taxes and 6% of Bob

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C Knapp

12th Edition

357515404, 978-0357515402

More Books

Students also viewed these Accounting questions

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago