1. The Alfa Company purchased a machine for $36.500. The salvage value will be $7.700. a) Make a straight-line depreciation schedule by completing the following table if its life expectancy is projected to be three years. YEAR Yearly Depreciation Accumulated Depreciation End of Year Book Value 1. 2. 3. b) If the expected life of the machine is 115.200 hours, find a unit depreciation, and calculate the first year depreciation if machine worked for 25.000 hours.
1. The Alfa Company purchased a machine for $36.500. The salvage value will be $7.700. a) Make a straight-line depreciation schedule by completing the following table if its life expectancy is projected to be three years. YEAR Yearly Depreciation Accumulated Depreciation End of Year Book Value 1. 2. 3. b) If the expected life of the machine is 115.200 hours, find a unit depreciation, and calculate the first year depreciation if machine worked for 25.000 hours.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![1. The Alfa Company purchased a machine for $36.500. The salvage value will be $7.700.
a) Make a straight-line depreciation schedule by completing the following table if its life
expectancy is projected to be three years.
Yearly Depreciation
Accumulated Depreciation
End of Year Book Value
YEAR
1.
2.
3.
b) If the expected life of the machine is 115.200 hours, find a unit depreciation, and
calculate the first year depreciation if machine worked for 25.000 hours.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5af37b3b-e6e6-4e11-a520-3fc9d255e4cf%2Ffa89d656-7a79-426b-af71-b88d0fac1e6d%2F6g90b2r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. The Alfa Company purchased a machine for $36.500. The salvage value will be $7.700.
a) Make a straight-line depreciation schedule by completing the following table if its life
expectancy is projected to be three years.
Yearly Depreciation
Accumulated Depreciation
End of Year Book Value
YEAR
1.
2.
3.
b) If the expected life of the machine is 115.200 hours, find a unit depreciation, and
calculate the first year depreciation if machine worked for 25.000 hours.
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