Question 19 HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, th estimated that the machine would last 6 years and have a salvage value of $90,000. They begin depreciating the machine using the straight-line depreciation method. On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years. What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine?

Question 19 HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, th estimated that the machine would last 6 years and have a salvage value of $90,000. They begin depreciating the machine using the straight-line depreciation method. On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years. What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...

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Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
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Question On October 1, 2019, Jay Company purchased a new machine for $112 500 The machine is estimated to have a $10,500 salvage value after its 10-year useful life. The machine is expected to be used 20,000 working hours over As usolut tre Instructions: Complate the lollowing depreciation schedules for 2019 and 2020. All answers should have dollar signs and commas. For example, your answers could be in the following formats: $5,000 or $15,000 or $150,000. Straight-Line Method Depreciation Expense Accumulated Depreciation Book Value 2020. Declining Balance Method (Assuming double the straight-line rate) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020 Units of Activity Method (Assuming machine working hours are as follows: 2019: 1,500; 2020: 4,000) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020
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