A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of $2,000, and a 5-year useful life. At the beginning of year 4 of its useful life, the estimate of the salvage value was reduced to $1,200 and its total useful life was increased to 6 years. The amount of depreciation that will be recorded during each of the remaining years of its useful life is: O $2,000 O $6,000 O $1,600 O $2,400

A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of $2,000, and a 5-year useful life. At the beginning of year 4 of its useful life, the estimate of the salvage value was reduced to $1,200 and its total useful life was increased to 6 years. The amount of depreciation that will be recorded during each of the remaining years of its useful life is: O $2,000 O $6,000 O $1,600 O $2,400

Name: A company used straight-line depreciation for equipment that cost $12
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of $2,000, and a 5-year useful life. Atthe beginning of year 4 of its useful life, the estimate of the salvage value was reduced to $1,200 and its total u

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

Sabel Co. purchased assembly equipment for $608,000 on January 1, Year 1. The equipment is expected to have a useful life of 320,000 miles and a salvage value of $32,000. Actual mileage was as follows: Year 1 88,000 Year 2 84,000 Year 3 79,000 Year 4 48,000 Year 5 22,000 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $242,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model. c. Assume that Sabel sold the equipment at the end of the fifth year for $33,800. Calculate the amount of gain or loss on the sale.
On January 1, a machine with a useful life of five years and a salvage value of $20000 was purchased for $290000. What is the depreciation expense for year 2 under straight-line depreciation?
when originally purchased, a vehicle costing 23,760 had an estimated useful life of 8 years and an estimated salvage value of 2,000. after 4 years of straight-line depreciation, the assets total estimated useful life was revised from 8 years to 6 and there was no change in the estimated salvage value. the depreciation expense in year 5 equals?
An asset was purchased and installed for $304781. The asset is classified as MACRS 7year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $22765. Using MACRS depreciation, the third year depreciation is: Enter your answer as: 123456.78 53306.2000
Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
A company purchased factory equipment for $640000. It is estimated that the equipment will have a $62000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, what would be the amount of annual depreciation recorded for the second year after purchase?
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) 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.) Your answer is correct. Depreciation for Year 2 (b) Depreciation for Year 1 Depreciation for Year 3 (c) eTextbook and Media Depreciation for Year 1 Your answer is correct. Depreciation for Year 2 Depreciation for Year 3 $ eTextbook and Media $ $ Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years-digits method. Depreciation for Year 2 $ $ $ Depreciation for Year 1 $ 46,410 $ 46,410 Depreciation for Year 3 $ 46,410 85.680 78.540 Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84% and final answers to 0 decimal…
Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $30,000, and the salvage value was estimated to be $3,000 at the end of five years. Compute the annual depreciation expenses through the five-year life of the equipment under each of the following methods of book depreciation:(a) The straight-line method.(b) The double-declining-balance method. (Limit the depreciation expense in the fifth year to an amount that will cause the book value of the equipment at year-end to equal the $3,000 estimated salvage value.)
A plant asset was purchased on January 1 for $59000 with an estimated salvage value of $9000 at the end of its useful life. The current year's Depreciation Expense is $5000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $30000. The remaining useful life of the plant asset is O 10.0 years. O 11.8 years. ○ 4.0 years. O 6.0 years.
An asset was originally purchased by the Sampson Corp. for $260,000. The depreciable base was determined to be $209,000, with an eight-year useful life. Given this information, the salvage value of this asset is a.) $51,000. b.) $58,625. c.) $26,125. d.) $35,000.
A company purchased a machine for $190,000. The machine has a useful life of 8 years and a salvage value of $10,000. It is estimated that the machine could produce 75,000 bolts over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the amount of accumulated depreciation at the end of the second year? Multiple Choice $48,133. $86,133. $23,750. $81,600. $45,600.
Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000 and a useful life of 10 years. After two years of using the double-declining balance method for depreciation, the company decided to switch to the straight-line method. The company also revised the equipment's remaining useful life to 6 years. What is the depreciation expense for the equipment for the third year? Answer a. $12,000 b. $9,000 c. $11,500 d. $13,500