A diesel-powered tractor with a cost of $258,560 and an estimated residual value of $2,500 is expected to have a useful operating life of 59,000 hours. During April, thetractor was operated 300 hours.Determine the depreciation for the month. If required, carry out any division to two decimal places.$

Depreciation refers to the fall in the value of an asset because of the use it experiences over its…

Answered: A diesel-powered tractor with a cost of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Depreciation by Units-of-Activity Depreciation A diesel-powered tractor with a cost of $191,060 and estimated residual value of $2,900 is expected to have a useful operating life of 64,000 hours. During November, the tractor was operated 100 hours. Determine the depreciation for the month. Carry out any division to two decimal places.
A machine with a cost of $68,856 has an estimated residual value of $5,301 and an estimated life of 3 years or 15,143 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 4,595 hours? Do not round your intermediate calculations. a. $21,185.00 b. $42,370.00 c. $19,285.16 d. $20,893.70
A fixed asset has a useful life of 5 years is purchased on the first of January of a certain. The purchasing price of the asset is $3,017.15, and its residual value is expected to be $759.01.. Based on this information, the depreciation for year 1 will be equal to (in three digits):
ABC Company bought manufacturing equipment on March 1 for $330,000. The manufacturingequipment is expected to last 3 years or 22,000 operating hours, and a residual value of $6,000. Themanufacturing equipment is used for 8,500 hours during Year 1, 6,500 hours in Year 2, 5,000 hours inYear 3, and 1,600 hours in Year 4.Instructions: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method {round the rate tonearest cent and depreciation expense to nearest dollar}, and (c) the double-declining-balance method{do not round intermediate calculations}.
A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.$ b. Determine the book value at the end of the seventh year of use.$ c. Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $15,000, determine the depreciation expense for each of the remaining five years.$
Depreciation by Units-of-activity Method A diesel-powered tractor with a cost of $310,620 and an estimated residual value of $4,100 is expected to have a useful operating life of 79,000 hours. During April, the tractor was operated 200 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places.
solve within 30 mins.
A truck costs $9,000 with a residual value of $1,000. It is estimated that the useful life of the truck is four years. The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is
Units-of-Production Method A machine is purchased January 1 at a cost of $60,130. It is expected to produce 136,000 units and have a salvage value of $3,010 at the end of its useful life. Units produced are as follows: Year 1 11,000 Year 2 8,100 Year 3 12,100 Year 4 16,200 Year 5 11,500 Required: Prepare a schedule showing depreciation for each year and the book value at the end of each year using the units-of-production method. Units-of-Production Method Beginning Annual Ending Year Book Value Depreciation Book Value 1 $60,130 2 3 4 5
A machine with a cost of $76,828.00 has an estimated residual value of $5,216.00 and an estimated life of 3 years or 14,766 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 4,158 hours? Select the correct answer. $21,634.22 $47,741.33 $23,870.67 $20,165.43
A copy machine cost $95,000 and has an estimated residual value of $5,000. It is expected to last about ten years and to make a total of 3,000,000 copies. 200,000 copies are made in Year 1, 300,000 in Year 2, and 450,000 in Year 3. Units-of-Activity depreciation is used.What is the balance in the Accumulated Depreciation account at the end of Year 3?

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