Caruso company purchased equipment on january 1 at a total invoice cost of $400,000. the equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. what is the amount of accumulated depreciation at the end of the second year if the straight-line method of depreciation is used?

$156,000

Explanation:

Depreciation expense = (Cost of asset - Salvage value) ÷ useful years

($400,000 - $10,000) ÷ 5 = $78,000

The depreciation expense recognised every year is $78,000.

Accumulated depreciation is the sum of yearly depreciation expense.

Accumulated depreciation at the end of the second year = $78,000 × 2 = $156,000

The amount of accumulated depreciation at the end of the second year is $156,000.

Explanation:

Determining the depreciation base = 400,000 - 10,000

The depreciation base = 390,000.

Determining the depreciation rate = depreciation base/useful life

The depreciation rate = 390,000/5

The depreciation rate = 78,000.

Depreciation for the two years = Depreciation rate × No. of years (which is  2)

Depreciation for the two years = 78,000 × 2

Depreciation for the two years = $156,000.

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20