SLU Cost of A Lump Sum Individual Assets & Accumulated Depreciation Discussion
Question Description
This week’s discussion questions are as follows:
- How is the cost of a lump-sum purchase allocated to the individual assets acquired? Provide a simple example of how the allocation would be performed if your company paid $1,000,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,200,000 for the 3 asset components $400,000, $500,000, and $300,000, respectively.
- Does the balance in the Accumulated Depreciation Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?
- Assume you work for a company in sales and therefore are entitled to not only hourly pay, but commission and bonus as well. You work 40 hours in a payroll week. Calculate your gross pay for your company if you make $x per hour (you select your rate!), earn a 5% bonus (of gross pay), and earn 10% commission (of gross pay).
- Unfortunately, you do not get to keep all your Gross Pay. Assuming you have the following withholding deductions taken out of your pay, now calculate your Net Pay.
| Withholding deductions: | |
| Employee income tax (20%) | |
| Employee OASDI tax (see book for how to calculate) | |
| Employee Medicare tax (1.45%) | |
| Employee health insurance | 75 |
| Employee contribution to United Way | 20 |
| Total withholdings: |
Post your initial response to the discussion question no later than Thursday 11:59 PM EST/EDT. You will not be able to see any of your classmates’ posts until you have posted your initial response.
- If you are posting your initial response, click the Start a New Thread button.
- If you are responding, click the Reply to Thread button for the thread you wish to respond to.
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