Judy purchases an industrial espresso machine that costs 3 0

Judy purchases an industrial espresso machine that costs $3, 078 to steam milk at her hot chocolate cafe. Using straight-line method, the annual depreciation on the machine is $492, 48. What is the value of Judy\'s espresso after two years? Professor Hinkle\'s Magic Shop specializes in magic hats. They began last year with $102, 456 in inventory. During the year, they purchased 200 top hats, 150 fedoras, and 120 stocking hats for $14, 757.30 in full. At the end of the year, the shop\'s inventory was valued at $87, 978. Select the correct calculation of the total cost of goods sold. (A) $102, 456 - $14, 757.30 + $87, 978 (B) $ 102, 456 + $ 14, 757.30 - $87, 978 (C) $102, 456 - $87, 978 (C) $14.757.30 + $87, 978

Solution

Here we have related formula based on said method that

Depression per annum =(cost- residual value)/useful life

On plug in related given values, we have

492.48 = (3078-residual value)/2

or 3078-residual value = 2(492.48) = 984.96

or residual value = 3078 - 984.96 = 2093.04

So required value of the machine after 2 years = $2093.04

Answer