.The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the Diminishing Balance method(20%) of depreciation. What is depreciation for the second year of the asset's life?
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.The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the
Diminishing Balance method(20%) of
life?
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
- A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $300,000. Solve, a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 12% per year.A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor’s life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? b. Assume the tractor is used for the full 6 years. c. Assume the tractor is sold during the 4th year of use. d. Assume the tractor is sold during the 3rd year of use.An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $28,167. Using MACRS depreciation, the first year depreciation is: Enter your answer as: 123456.78
- COCOLOS Industries uses the straight-line depreciation method. One asset had been purchased for $6,000. Annual depreciation expense was $600.00 after considering residual value of $1,000. What was the approximate life of the asset? a. 5.0 yearsb. 8.3 yearsc. 9.5 yearsd. 10.2 yearspeavey enterprises purchased a depreciable asset for 29,000 on April 1, year 1. The asset will be depreciated using the Straight-line method over it four year useful life. assuming the assets salvage value is 3,400 what will be the amount of accumulated depreciation on this asset on Dec 31, year 3?A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? ANSWER b. Assume the tractor is used for the full 6 years ANSWER of use. c. Assume the tractor is sold during the 4th year ANSWER d. Assume the tractor is sold during the 3rd year of use.
- Splish Company purchases equipment on January 1, Year 1, at a cost of $612,000. The asset is expected to have a service life of 12 years and a salvage value of $55,080. (a) Your answer is correct. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to O decimal places, e.g. 5,125.) Depreciation for Year 1 Depreciation for Year 2 (b) Depreciation for Year 3 eTextbook and Media tA Depreciation for Year 1 tA $ tA $ tA Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. Depreciation for Year 2 $ tA 46,410 Depreciation for Year 3 $ 46,410 46,410 Attempts: 1 of 3 usedCompany E recently acquired an asset that has a cost basis of $11,000. The asset’s estimated life is 5 years, after which it will be sold for $1,000. Find the accumulated depreciation by the end of the second year if the sum-of-years digits depreciation is used.Consider a five-year MACRS asset purchasedat $80,000. (Note that a five-year MACRS propertyclass is depreciated over six years due to the half-yearconvention. The applicable salvage values would be$40,000 in year 3, $30,000 in year 5, and $10,000 inyear 6.) Compute the gain or loss amounts when theasset is disposed of in(a) Year 3.(b) Year 5.(c) Year 6
