DEF Enterprises acquired a piece of equipment for $100,000. The estimated useful life is 5 years with no residual value. If the company uses the straight-line depreciation method, what is the annual depreciation expense?
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DEF Enterprises acquired a piece of equipment for $100,000. The estimated useful life is 5 years with no residual value. If the company uses the
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- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
- XYZ Company purchases a new machine for $50,000 with a useful life of 5 years and no salvage value. The company uses straight-line depreciation. Calculate the annual depreciation expense for the machine.Sunland Company purchased a depreciable asset for $175900. The estimated salvage value is $13900, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the asset's depreciation base?ABC Ltd, purchased a machinery worth of $ 100,000 in the year 2018.The machinery has no resale value and has a useful life of 5 years. The machine can be used for a total of 50,000 machine hours. If the machine was used for 15,000 hours in the first year. What is the value of depreciation in the first year based on the activity-based method of depreciation?
- A depreciable asset currently has a $40,100 book value. The company owning the asset uses straight-line depreciation. They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a 12-year useful life. How long has the company owned this asset?A used machine, which had an initial cost of $70,000, was purchased by Company A for $50,000. The company expects to depreciate the machine over a five-year period and then sell it for $10,000. According to the straight-line method, what is the depreciation charge in year two?A company purchased factory equipment for $640000. It is estimated that the equipment will have a $62000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, what would be the amount of annual depreciation recorded for the second year after purchase?
- ARON Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8 years or a total of 100,000 working hours with no salvage value. The operating machine totaled: 2020, 5,000 hours; 2021, 12,000 hours. If the working hours method is used, the depreciation for the year 2021 isMason Company purchased a depreciable asset for $2,000,000. The estimated salvage value is $150,000, and the estimated useful life is 400,000 hours. Mason used the asset for 35,000 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset?An owner may calculate depreciation using the 'units of production' methods of depreciation. Consider a depreciable asset costing $100,000 that is expected to have a useful life of 120,000 Units of production. Salvage value is estimated to be negligible. Estimated annual production for the next 7 years is 30,000, 30,000, 20,000, and 10,000 per year over the remaining 4 years. Use the 'units of production' depreciation method and determine the depreciation each year.