QUESTION 20 The balance sheet of a partnership wil report fetaned earns below th
ID: 2595515 • Letter: Q
Question
QUESTION 20 The balance sheet of a partnership wil report fetaned earns below the patnership capital accounts O show a separate capital account for each parte O show a separate drawing account for each partner show the amount of income that was dstrblod to each partner QUESTION 21 Santa purchased a new sied for $200,000 It is estimated that the sled will have a $20,000 salvage value at the end of ts 5year uselul service ile, and will deliver 90,000 presents in total, over its entre us ie The numbrofresents dlelivered in year one lotal 15,000 Compute the fet year degecation expense usng the olowing methods (enter your answers as whole dollar amounts) a) Straight line method of deprec ation b) Double-declining balance method c) Units-of-activity method[ Click Save and Submit to sove and subt Cliok Save All Anssers to save all ansvers Save Al Anaers Cloe Windo DOLExplanation / Answer
20.
Shows separate capital account of each partner
Balance Sheet shows the value of Assets, Liabilities and Capital, so it will shows the capital accounts of different Partners.
21
Cost = 200,000
Useful life = 5 Years
Salvage Value = 20,000
Straight Line Method
Depreciation per year = (Cost – Salvage Value) / Useful life
= (200,000 – 20,000) / 5
Depreciation per year = $36,000
Year 1 = $36,000
Units of Activity Method
Total presents = 90,000
Depreciable value = Cost – Salvage value
= 200,000 – 20,000
Depreciable value = 180,000
Depreciation = (Presents delivered in that year/total Presents) * Depreciable value
Year 1 = (15,000 / 90,000) * 180,000
Year 1 = $30,000
Declining Balance Method
Depreciation rate = 2* Straight line rate
= 2*20%
Depreciation rate = 40%
Depreciation = Rate * Book Value
Year 1 = 200,000*40%
Year 1 = $40,000