rmer Company purchased machine on January 1, Year 1 for $91,000. The machine is estimated to have a 5-year life and a salvage value of $12,000. The company uses the straight-line method. the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life? Multiple Choice

rmer Company purchased machine on January 1, Year 1 for $91,000. The machine is estimated to have a 5-year life and a salvage value of $12,000. The company uses the straight-line method. the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life? Multiple Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

None
s
Byrd Inc., a calendar year-end company, purchased a machine on 1/1/X1 with the following attributes: Cost $ 50,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Byrd uses the straight-line depreciation method, answer each of the following questions: (do not include decimals or cents) Question #1: How much depreciation expense should be recorded in 20X2 (the second year of the asset's life)? Answer: $ Question #2: What should be the balance in the "Accumulated Depřeciation" account at the end of 20X2, after all year-end journal entries? Answer: $ Question #3: What should be the book value of the machine at the end of 20X2, after all year-end journal entries? Answer: $
.
Manufacturing Inc. purchased a machine on 1 January 20X2 for $520,000. The estimated physical life of the machine is 15 years, but the estimated useful life to Manufacturing is 10 years. The equipment has an estimated residual value of $29,560. The equipment was ready for use on 1 January 20X2. Required: 1. Calculate depreciation expense for 20X2 and 20X3 using the straight-line method. 20X2 20X3 Depreciation Expense $ 49,044 $ 49,044 2. Assume the machine is anticipated to produce 804,000 units. In 20X2 the machine produced 152,000 units and in 20X3 122,000 units. Calculate depreciation expense for 20X2 and 20X3 using the productive-output method. Depreciation Expense 20X2 20X3 3. Calculate depreciation expense for 20X2 and 20X3 using the declining-balance method using 40%. 20X2 Depreciation Expense 20X3
DEPLORABLE BAD Co. acquired a machine on October 5, 20x1 for a total cost of $160,000. The machine was estimated to have a useful life of 4 years and a salvage value of $10,000. DEPLORABLE BAD Co. uses the sum-of-the-years' digits method and prorates full-year depreciation to the nearest month. DEPLORABLE BAD Co. sold the machine on December 27, 20x2 for $40,000. How much is the gain (loss) on the sale? O (48,750) 48,750 (32,250) 32,250
.
Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following information pertains to the purchase: Life of asset Salvage value Purchase price Sales tax Freight cost Electrical set-up Custom programming Estimated annual labor savings Additional revenue generated a. Determine the capitalized cost of the new machine $84600 b. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming: i. Straight-line depreciation ii. Double-declining-balance method Year 1 Year 2 Year 3 Straight-Line Depreciation Double-Declining Balance Depreciation Accumulated Book Value at Depreciation Accumulated Book Value at Expense Depreciation Year-end Expense Depreciation Year-End $ 5 years $9,000 54,000 3,000 2,400 2,100 1,500 10,500 24,000 0 $ 0 0 Straight-line $ Double-declining $ 0 0 0 0 0 $ 0 $ 0 0 i. Straight-line depreciation ii. Double-declining balance method Do not use negative signs with your answers below.…
Ironworks Industries purchased a piece of equipment for $80,000 with an estimated salvage value of $15,000 on January 1. Its estimated life is 5 years. To the nearest dollar, what is the equipment's depreciation using double-declining-balance for year 2? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Please help me with this question
On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be used, what is depreciation expense for the first year of the asset's life? O $52867 O $79300 O $55459 O $82800
Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five years and have a salvage value of $60,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Fraction of Year Depreciation Expense Year First year Second year Annual Depreciation X = Annual depreciation