Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Set the below answers to zero decimal place.
On September 22, 2023, Phantom Inc. purchased machinery for $190,000. Residual value was estimated to be $10,000. The machinery will be
If depreciation is computed on the basis of the nearest full month, how much depreciation expense for 2024 on this machinery should Marvel record?
B.
Bower Co. purchased equipment in January of 2014 for $90,000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no residual value. At the beginning of 2024, when the equipment had been in use for 10 years, the company paid $15,000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years.
What should be the depreciation expense recorded for this equipment in 2024?
C.
In January, 2024, Sparkle Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2024, 500,000 tons were removed and 400,000 tons were sold.
What is the amount of depletion that Sparkle Corporation should expense for 2024? $
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