A machine is purchased at the beginning solve this accounting questions A machine is purchased at the beginning of 2008 for $42,000. Itsestimated life is eight years. Freight costs on the machine are $3,000.Installation costs are $1,600. The machine is estimated to have aresidual value of $600 and a useful life of 32,000 hours. It was used3,000 hours in 2008.1. What is the cost of the machine for accounting purposes?2. Compute the depreciation charge for 2008 using (a) the straight-line method and (b) the service-hours method.

Step 1: Define Accounting for Plant AssetsPlant assets are carried on the balance sheet at their…

Answered: A machine is purchased at the beginning…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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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 the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
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?
At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. Th e machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for fi nancial reporting purposes? B . $60,000.
On January 1, 2003, Superior Landscaping Company paid P17,000 to buy a stump grinder. If Superior uses the grinder to remove 2,500 stumps per year, it would have an estimated useful life of 10 years and a salvage value of P4,500. The amount of depreciation expense for the year 2003, using units-of-production depreciation and assuming that 3,500 stumps were removed, is?
This question is based on the following information: Trinity Company bought a copying machine costing P 123,000 with an estimated life of 3 years with negligible salvage value. The estimated earnings after taxes of this machine at the end of each year are estimated below: Earnings after taxes End of year 1 P 8,120 2 7,200 3 6,820 The company is using the straight line method for computing the depreciation. What is the accounting rate of return on the average cost of investment? a. 10.5% b. 11.5% c. 12% d. 15%
Xanadu Company purchased a new machine on October 1, 2014, at a cost ofTk.96,000. The company estimated that the machine will have a residual value of Tk.12,000.Themachine is expected to be used for 10,000 working hours during its 5-year life.Requirements:Compute the depreciation expense under the following methods for the year indicated.(a) Straight-line for 2014.(b) Units-of-activity for 2014, assuming machine usage was 1,700 hours.(c) Declining-balance using double the straight-line rate for 2014 and 2015.
Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2022 and 11,700 in 2023. (a1) Your answer is correct. Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost .29 per mile eTextbook and Media List of Accounts Attempts: unlimited %24
A melting machine in a steel plant cost $400000. The salvage value of the machine is 12.5% of the purchase cost. The machine will provide service for 8 years. (i) Prepare a depreciation schedule for the tax purposes (Annual depreciation and Book value) by Declining Balance method. Use a depreciation rate of percentage. (ii) Is the salvage value of the machine maintained in the record?
On January 1, 2017, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect? Group of answer choices A)The annual depreciation expense is $6,000. B)The December 31, 2017 book value was $35,000. c)The December 31, 2019 accumulated depreciation balance was $18,000. D)The December 31, 2018 book value was $24,000. E)All of the above are correct
Metlock, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected salvage value of $3,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,400 in 2022 and 12,500 in 2023. Calculate depreciable cost per mile under units-of-activity method.
On January 1, 2013, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2013 and 12,000 in 2014. What is depreciation expense for 2013 if the company uses straight-line depreciation?

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