Blossom Company purchased a new machine on October 1, 2025, at a cost of $90,640. The company estimated that the machine has a salvage value of $9,040. The machine is expected to be used for 70,500 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2025 and 2026, assuming a December 31 year-end. Depreciation expense under the straight-line method $ 2025 $ 2026

Blossom Company purchased a new machine on October 1, 2025, at a cost of $90,640. The company estimated that the machine has a salvage value of $9,040. The machine is expected to be used for 70,500 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2025 and 2026, assuming a December 31 year-end. Depreciation expense under the straight-line method $ 2025 $ 2026

Name: Blossom Company purchased a new machine on October 1, 2025, at a cost
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Blossom Company purchased a new machine on October 1, 2025, at a cost of $90,640. The company estimated that themachine has a salvage value of $9,040. The machine is expected to be used for 70,500 working hours during its 8-year life.Compute the dep

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Atlas Painting purchased a new machine on October 1, 2020, at a cost of £90,000. The company estimated that the machine will have a residual value of £4,000. The machine is expected to be used for 10‐year life.Instructions:Compute the depreciation expense under straight-line for the year ended December 31st :- 2020 and -2021.
Novak Corp. purchased a new machine on October 1, 2022, at a cost of $137,000. The company estimated that the machine will have a salvage value of $21,500. The machine is expected to be used for 10,000 working hours during its 5-year life. Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023.
Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,600 units in 2021 and 2,050 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers to nearest whole dollar.) Depreciation Expense 2021 2022 2025
Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 years and a salvage value of $56,400. Swifty accounting period is the calendar year. (a) 4 Compute the depreciation for this asset for 2025 and 2026 using the sum-of-the-years'-digits method. (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 45,892.) Depreciation for 2025 Depreciation for 2026 IA $ $
Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. It's life is estimated at 5 years, and it's working hours are estimated at 20,000 hours. Year-end is December 31. Could you calculate the depreciation expense for the Sum-of-the-years'-digits for 2026?
On July 1, 2023 Jackson Company purchased factory equipment for $880,000 with an estimated $40,000 salvage value. The estimated useful life for the equipment is 12 years. During 2023, 2024, and 2025 the equipment is depreciated using the straight-line method. During 2026, $36,000 in maintenance is required on the machine to keep it running up to its standard operating specifications. Also, in 2026, $115,000 is spent to improve the equipment's efficiency and prolong its useful life. The new useful life is expected to be an additional 12 years beginning in 2026 and the revised salvage value is $25,000. Instructions . 4. Explain the accounting treatment of the $115,000 in equipment improvement that occurred in 2026. 5. What journal entry is required to record annual depreciation for 2026? hevni pris
Oklahoma Company purchased a machine on January 1, 2020. The machine had a cost of $520,000 with a $20,000 residual value. The estimated useful life of the machine was eight years. On January 1, 2022, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation. Required: Prepare the journal entry to record the annual depreciation on December 31, 2022. Show your calculations before you post the journal entry.
Company B purchased new machinery for $100,000 on January 1, 2022. The machinery has an estimated useful life of 10 years and a salvage value of $10,000. Assuming straight-line depreciation, what is the depreciation expense for the year 2022?
Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $26,000. Its estimated residual value was $8,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,000 units in 2021 and 1,450 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. 2 Required A Required B Required C Calculate depreciation expense for 2021 and 2022 using the straight-line method. Depreciation Expense Per Year W S X #3 o E D C $ 4 R 2021 U * 00 8 N J FA 1 - 09 K M ** -O L V . P
A Company purchased equipment on January 1, 2019 for AED 70,000. It is estimated that the equipment will have a AED 5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Required: Solve the following independent questions where you need to show all the required calculations: Part A Compute the amount of depreciation expense for the year ended December 31, 2020, using the straight-line method of depreciation. Part B:- If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the book value of the equipment at December 31, 2020? The company uses the units-of-activity depreciation method. I Part C If the company uses the double-declining-balance method of depreciation, what is the balance of the Accumulated Depreciation-Equipment account at December 31, 2020?
Ronald Drycleaners purchased a new steam press on January 1, 2020 for $200,000. The salvage value is $25,000 with an estimated life of 8 years. If the double-declining-balance method is used, the depreciation expense for 2021 will be $50,000. $21,667. $37,500. $39,063.
Pharoah Company purchased a delivery truck for $36,000 on July 1, 2022. The truck has an expected salvage value of $4,000 and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Pharoah uses the straight-line method of depreciation. 1. Compute depreciation expense for 2022 and 2023 via straight-line method. 2. Prepare the journal entry to record 2022 depreciation 3. Prepare the journal entry to record 2023 depreciation. 4. Show how the truck would be reported in the December 3, 2023, balance sheet