(Depreciation for Partial Periods—SL, Act., SYD, and Declining-Balance) The cost of equipment purchased by Charleston, Inc., on June 1, 2017, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 525,000 units. During 2017, the machine was operated 6,000 hours and produced 55,000 units. During 2018, the machine was operated 5,500 hours and produced 48,000 units.InstructionsCompute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, using the following methods.(a) Straight-line. (d) Sum-of-the-years’-digits.(b) Units-of-output. (e) Declining-balance (twice the straight-line rate).(c) Working hours.

Devon Manufacturing Company purchased a new canning machine on July 1, 2015, for $190,000. The estimated salvage value is $15,000. The company uses units-of-production depreciation and estimates the machine will produce 125,000 units during its useful life. In 2015, the company manufactured 5,000 units after acquiring the machine. Depreciation expense for 2015 will be   $7,600 $6,500 $14,000 $7,000

On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $40,000 with a residual value of $5,000.   Prepare a complete depreciation table under the two depreciation methods listed below.   Straight-line. 200 percent declining-balance. 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense.

Equipment was purchased for $120,000 on March 1, 2016. Its estimated useful life is eight years with a $12,000 expected salvage value. Using double-declining balance depreciation, the 2017 depreciation expense is: A) $22,500 B) $27,000 C) $23,750

! Required information [The following information applies to the questions displayed below.] On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $310,000. The machine is expected to last five years and have a salvage value of $55,000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation = Annual depreciation = Year Annual Depreciation X Fraction of Year 2016 2017 X Depreciation Expense

(Depreciation—SL, DDB, SYD, Act., and MACRS) On January 1, 2016, Locke Company, a small machine-tool manufacturer, acquired for $1,260,000 a piece of new industrial equipment. The new equipment had a useful lifeof 5 years, and the salvage value was estimated to be $60,000. Locke estimates that the new equipment can produce 12,000 machine tools in its first year. It estimates that production will decline by 1,000 units per year over the remaining useful life of the equipment.The following depreciation methods may be used: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years’-digits, and (4) units-of-output. For tax purposes, the class life is 7 years. Use the MACRS tables for computing depreciation.Instructions(a) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2018? Prepare a schedule showing the amount of accumulated depreciation at December 31, 2018, under the method selected. Ignore…

A company purchased a new machine on January 1, 2014. The supplier, "Forever supply" was paid $2,000 in cash. In addition, transportation and installation were $180 (paid in cash), legal costs associated with the asset were $20 (paid in cash). The machine has an estimated life of 5 years and an estimated salvage value of $300. It is company policy to use straight line depreciation for all of its machines.  question:  Assume the machine was sold on July 1, 2015 to "company A" for $1200 cash. Prepare the journal entry/entries to record this transaction.  What was the gain/loss? Include the classification of the accounts and clearly label your debits and credits.

Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in January 2001. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2021, a new roof was installed at a cost of $300,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $160,000. Instructions a.   What amount of depreciation should have been charged annually from the years 2001 to 2020? (Assume straight-line depreciation.) b.   What entry should be made in 2021 to record the replacement of the roof? c.   Prepare the entry in January 2021 to record the revision in the estimated life of the building, if necessary. d.   What amount of depreciation should be charged for the year 2021?

On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year estimated useful life and a $3,000 estimated residual value. In addition, the company expects the machine to produce 200,000 units. Assuming that the machine produced 35,000 and 45,000 units during 2010 and 2011, respectively, complete the following chart.       Depreciation Expense1st Year Depreciation Expense2nd Year Accumulated Depreciation Carrying (Book) Value Straight-Line     Method         Units-of-Production       Method         Double Declining Balance Method

On January 1, 2022 Romano Company purchased a machine for $180,000. It is estimated that the machine will have a useful life of 4 years with a salvage value of $10,000 at the end of its useful life. It is also estimated that the machine will produce 125,000 units over its useful life. Actual usage was as follows: 2022, 45,000 units; 2023, 35,000 units; 2024, 25,000 units; and 2025, 20,000 units. Required: Calculate the annual depreciation expense under each of the following methods using an excel spread sheet: Declining-Balance