Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.arrow_forwardA machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.arrow_forwardAn assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000arrow_forward
- A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is depreciated by the DDB method over a 5-year period. If the operating cost is $43,000 per year, the depreciation charge for year 2 is closest to:a. $18,000b. $11,200c. $6700d. $4030arrow_forwardNeed answer pleasearrow_forwardOriginal cost of a machine was Rs. 2,52,000; Salvage value was 12,000. Useful Life was 6 years, Annual depreciation under Straight Line Method will be: 1. 42,000 2. 40,000 3. 30,000 4. 28,000arrow_forward
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- Copy equipment was acquired at the beginning of the year at a cost of $37,120 that has an estimated residual value of $3,400 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,124,000 copies. This year, 295,000 copies were made. a. Determine the depreciable cost. $4 b. Determine the depreciation rate. Round your answer to two decimal places. per copy c. Determine the units-of-output depreciation for the year. $4 %24 %24arrow_forwardPlease help me with show all calculation thankuarrow_forwardThe cost of a machine is 18,000 with a salvage value of RO 4270 at the end of its life of five years. Applying written down value method, the depreciation for the second year is ______________. a. RO 4500 b. RO 3375 c. RO 10125 d. RO 13500arrow_forward
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