Jim Company bought a machine for $43,200 with an estimated life of 5 years. The residual value of the machine is $7,200. Assume straight-line depreciation. A. Calculate the annual depreciation. B. Calculate the book value at the end of year 3.
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Jim Company bought a machine for $43,200 with an estimated life of 5 years. The residual value of the machine is $7,200. Assume straight-line
A. Calculate the annual depreciation.
B. Calculate the book value at the end of year 3.
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- Monster Inc. purchased a machine for $100,000 and depreciated it on a straight-line basis over a 10-year period. The machine has an estimated residual value of $10,000. After using the asset for 3 years, the management realized that the machine will wear out before 10 years. Starting in year 4, the company began depreciating the machine over a revised total life of 8 years. a. Calculate the depreciation expense for year 1 b. Calculate the book value of the machine after year 3 c. Calculate the depreciation expense for year 4 d. Calculate the book value of the machine after year 8Copy equipment was acquired at the beginning of the year at a cost of $51,850 that has an estimated residual value of $4,700 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 943,000 copies. This year, 204,000 copies were made. a. Determine the depreciable cost.$fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places.$fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year.$fill in the blank 3Lord Company purchased a machine on January 2, Year 1, for $70,000. The machine had an expected residual value of $10,000, an expected life of 8 years or 24,000 hours, and a capacity to produce 100,000 units. During Year 1, Lord produced 12,000 units in 2,500 hours. In Year 2, Lord produced 15,000 units in 3,000 hours. b. Prepare a schedule showing depreciation expense for Year 1 and Year 2 and the book value of the asset at the end of Year 1 and Year 2 for the activity method based on hours worked. LORD COMPANY Depreciation Schedule Activity method: Hours worked Beginning Book Value Depreciation Ending Book Value Year 1 $fill in the blank fd058a096fae012_1 70,000 $fill in the blank fd058a096fae012_2 7,500 $fill in the blank fd058a096fae012_3 Year 2 $fill in the blank fd058a096fae012_4 $fill in the blank fd058a096fae012_5 $fill in the blank fd058a096fae012_6
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