1-A truck was purchased for $180,000 and it was estimated to have a $36,000 salvage value at the end of its useful life. Monthly depreciation expense of $3,000 was recorded using the straight-line method. The annual depreciation rate is? 2- A company purchased factory equipment on April 1, 2017 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017 is? 3-A company purchased factory equipment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be?
1-A truck was purchased for $180,000 and it was estimated to have a $36,000 salvage value at the end of its useful life. Monthly depreciation expense of $3,000 was recorded using the straight-line method. The annual depreciation rate is? 2- A company purchased factory equipment on April 1, 2017 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017 is? 3-A company purchased factory equipment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ouestion NO. 2 Answer the following questions
1-A truck was purchased for $180,000 and it was estimated to have a $36,000 salvage
value at the end of its useful life. Monthly depreciation expense of $3,000 was
recorded using the straight-line method. The annual depreciation rate is?
2- A company purchased factory equipment on April 1, 2017 for S160,000. It is
estimated that the equipment will have a $20,000 salvage value at the end of its
10-year useful life. Using the straight-line method of depreciation, the amount
to be recorded as depreciation expense at December 31, 2017 is?
3-A company purchased factory equipment for $700,000. It is estimated that the
equipment will have a $70,000 salvage value at the end of its estimated 5-year
useful life. If the company uses the double-declining-balance method of
depreciation, the amount of annual depreciation recorded for the second year
after purchase would be?
4- On October 1, 2017, Holt Company places a new asset into service. The cost of the
asset is S120,000 with an estimated 5-year life and $30,000 salvage value at the
end of its useful life. What is the book value of the plant asset on the December
31, 2017, balance sheet assuming that Holt Company uses the double-declining-
balance method of depreciation?
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