10-6 Swinton Company purchased a new machine on October 1, 2012, at a cost of $120,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions

10-6 Swinton Company purchased a new machine on October 1, 2012, at a cost of $120,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions

Name: E10-6 Swinton Company purchased a new machine on October 1, 2012, at
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Description: E10-6 Swinton Company purchased a new machine on October 1, 2012, at a costof $120,000. The company estimated that the machine will have a salvage valueof $12,000. The machine is expected to be used for 10,000 working hours duringits 5-year life.Ins

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how 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.
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?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
E10-6 Rottino Company purchased a new machine on October 1, 2017, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2017. (b) Units-of-activity for 2017, assuming machine usage was 1,700 hours. (c) Declining-balance using double the straight-line rate for 2017 and 2018.
On January 1, 2014, ABC Company purchased a machine for P504,000 that was placed in service on March 1, 2014. Additional cost incurred to bring the asset to its location and prepare for its intended use were: shipping, P4,000 and installation and testing cost, P6,000. The estimated useful life of the asset was 10 years and has an estimated salvage value of P34,000. What amount of depreciation should be recognized for the year ended December 31, 2014?
At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. Th e machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for fi nancial reporting purposes? B . $60,000.
E9-6 Kelm Company purchased a new machine on October 1, 2011, at a cost of $120,000. The company estimated that the machine will have a residual value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2011. (b) Units-of-activity for 2011, assuming machine usage was 1,700 hours. (c) Declining-balance using double the straight-line rate for 2011 and 2012.
At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. Th e machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for fi nancial reporting purposes? A . $55,000.
E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1,2008. The truck has an expected salvage value of $2,000, ánd is expected to be driven 100,000 miles over its esti- mated useful life of 8 years. Actual miles driven were 15,000 in 2008 and 12,000 in 2009. Instructions (a) Compute depreciation expense for 2008 and 2009 using (1) the straight-lime method, (2) the units-of-activity(method, and (3) the double-declining balance method. (b) Assume that Brainiac uses the straight-line method. (1) Prepare the journal entry to record 2008 depreciation. (2) Show how the truck would be reported in thě December 31, 2008, balance sheet.
A plant asset was purchased for P19,000 on January 1, 2011 with a residual value and useful life of five years. In 2014, the total useful life is re-estimated to be seven years and the estimated salvage value is assumed to be zero. Sum of years' digits depreciation is used. What is the depreciation expense in 2014? O a) P2,340 O b) P2,160 O c) P1,350 O d) P1,210
Cheyenne Corp. purchased a new machine on October 1, 2022, at a cost of $131,000. The company estimated that the machine will have a salvage value of $18,500. The machine is expected to be used for 10,000 working hours during its 5-year life. Straight-line method for depreciation expense for 2022 is 5625 My question is "Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,900 hours." The answer should be a depreciation expense this is for a study guide on wiley plus
Ehrlich Company purchased a new machine on January1, 2022, at a cost of$145,000. The company estimated that the machine will have a salvage value of $25,000.The machine is expected to be used for 20,000 working hours during its 5-year life.InstructionsCompute the depreciation expense under the following methods for the year indicated.(a) Straight-line for 2022 and 2023.(b) Units-of-activity for 2022, assuming machine usage was 5,400 hours.(c) Prepare the journal entry to record depreciation expense for 2022 using each method