1 . In the above invoice, how much can be expensed immediately? a. $126,500 b. $
ID: 2426824 • Letter: 1
Question
1. In the above invoice, how much can be expensed immediately?
a. $126,500 b. $107,525 c. $8,602 d. $116,127
2. The finance team needs your help. They asked you to calculate the depreciation of your purchase. Using the Straight Line method, what is the approximate book value of the 3-D Printer in Year 2 if the device has a life of three (3) years and a salvage value of $1,000?
a. $38255 b. $38215 c. $36509 d. $37899
3. Based on the previous question, what is the approximate book value at the end of year 3?
a. $38,575 b. $38,490 c. $38,475 d. $1,000
Shipping Metho d Shipping Terms Delivery Date Payment Terms Salesperson Job Due Date 1. Connor 02248 Ground Prepay 3/6/2016 Due on order 2/18/2016 Item # Description Unit Price Discount Line Tota T-800 Model 101 3-D Printer (Deluxe) $126,500 15% $107,525 15% $107,525 107,525 $8,602 $116,127 TotaI Discoun t Subtotal Sales Tax (8%) TotalExplanation / Answer
1. In the above invoice, $ 107,525 being the discount can be expensed immediately, plus the sales tax of $ 8,602, thereby leading to a total expense of $ 116,127. 2. The cost of the printer will be $ 116,127 The salvage value thereof after 3 years is $ 1,000 Hence, the book value of the Printer will be $ 115,127 Depreciating the same on the straight line method for 3 years, the book value, depreciation and WDV per year will be as follows : (All amounts in $) Year Book Value Depreciation WDV 1 115127 38375.67 76751.33 2 76751.33 38375.67 38375.67 3 38375.67 38375.67 0 Based on these workings, the approximate book value of the printer for Year 2 will be $ 38,475 (that being closest to $ 38,375). 3. Similarly, the approximate book value of the printer at the end of year 3 will be $ 1,000 (being closest to 0).
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