FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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| Monster Inc. purchased a machine for $100,000 and |
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| 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 8 | ||||||||
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- es Apex Fitness Club uses straight-line depreciation for a machine costing $23,250, with an estimated four-year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,950 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0arrow_forwardMohr Company purchases a machine at the beginning of the year at a cost of $42,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 8 years with a $4,000 salvage value. The book value of the machine at the end of year 2 is:arrow_forwardCompany D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage value of $10,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the accumulated depreciation charge on the second year?arrow_forward
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