FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A machine with a cost of $63,616 has an estimated residual value of $5,755 and an estimated life of 4 years or 16,212 hours. It is to be
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- A refrigerator used by a wholesale warehouse has a cost of $66,700, an estimated resid-ual value of $5,100, and an estimated useful life of 14 years. What is the amount of the annual depreciation computed by the straight-line method?arrow_forwardEquipment with a cost of $76,870, an estimated residual value of $5,844, and an estimated life of 11 years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years isarrow_forwardA machine with a cost of $59,600 has an estimated residual value of $3,072 and an estimated life of 5 years or 15,462 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? a.$11,920 b.$14,304 c.$22,611 d.$23,840arrow_forward
- A company purchased a machine for $190,000. The machine has a useful life of 8 years and a salvage value of $10,000. It is estimated that the machine could produce 75,000 bolts over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the amount of accumulated depreciation at the end of the second year? Multiple Choice $48,133. $86,133. $23,750. $81,600. $45,600.arrow_forwardThe cost of an asset is $1,180,000, and its residual value is $260,000. Estimated useful life of the asset is five years. Calculate depreciation for the second year using the double−declining−balance method of depreciation.arrow_forwardA machine with a cost of $68,856 has an estimated residual value of $5,301 and an estimated life of 3 years or 15,143 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 4,595 hours? Do not round your intermediate calculations. a. $21,185.00 b. $42,370.00 c. $19,285.16 d. $20,893.70arrow_forward
- Equipment with a cost of $143,431 has an estimated residual value of $8,131 and an estimated life of 6 years or 12,405 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,454 hours? b. $6.00 c. $22,550.00 d. $37,672.41arrow_forwardA refrigerator used by a wholesale warehouse has a cost of $82,000, an estimated residual value of $6,200, and an estimated useful life of 8 years. What is the amount of the annual depreciation computed by the straight-line method?arrow_forwardA machine with a cost of $750,000 has an estimated salvage value of $100,000) and an estimated useful life of 5 years or 30,000 hours. It is to be depreciated using the units-of-activity method of depreciation. The machine was used for 7,000 hours in the first year and 9,000 hours in the second year. Calculate the depreciation expense for the second year using the units of activity method. (Please round answer to the nearest dollar, i.e. 3,078.666 would be entered as 3,079)arrow_forward
- A machine with a cost of $57,300 has an estimated residual value of $3,956 and an estimated life of 5 years or 20,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?arrow_forwardA machine with a cost of $66,200.00 has an estimated residual value of $3,201.00 and an estimated life of 5 years or 18,256 hours. What is the amount of depreciation for the second full year, using the double declining-balance method? Select the correct answer. a.) $15,888.00 b.) $26,480.00 c.) $13,240.00 d.) $25,199.60arrow_forwardA machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?arrow_forward
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