A plant asset was acquired on January 1, 2008, has a cost of $24,000 and a salvage value of$6,000. The asset has a three-year life. If depreciation in the THIRD year amounted to$3,000, which depreciation method was used?O Straight-lineDeclining-balanceSum-of-the-years-digitsO Cannot tell from information given

There are three main methods of depreciation: straight-line, declining balance, and…

Answered: A plant asset was acquired on January…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A plant asset cost $313600 and is estimated to have a $37000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be O $31170. O $39036. O $27720. O $44100.
> Computer equipment was acquired at the beginning of the year at a cost of $29,375 that has an estimated residual value of $1,800 and an estimated useful life of 5 years. a. Determine the depreciable cost. b. Determine the double-declining-balance rate. % c. Determine the double-declining-balance depreciation for the first year. LA ?
A machine was purchased for $72,000, has a 10-year useful life, and a $4,000 salvage value. What is its depreciation expense in year 2 using the sum of the years' digits method (rounded to the nearest dollar)? Select one: O a. 12,364 O b. 11,782 c. 13,091 d. 11,127 O
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Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming that the equipment was sold at the end of the second year for $631,697 determine the gain or loss on the sale of the equipment Journalize the entry on Dec. 31 to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal SAMSUNG PreviouS Next
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please want the answer
Computing Depreciation Expense. Equipment costing $440,000, with an expected scrap value of $40,000 and an estimated useful life of 5 years, was purchased on January 1, 20 Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line method and (b) the double-declining-balance method. Round to the nearest whole number. 2012 2013 2014 2015 2016 Straight-line depreciation Double declining balance (0) without straight-line switch-over s (b) with straight-line switch-over 80,000 v$ 80,000 vS 80,000 vs 80,000 v S 80,000 176,000 vs 176,000 vs 105,600 S 63,360 vs 38,016 $ 17,024 105,600 vs 80,000 x $ 80,000 x s 80,000 x Which method is typically preferred for: A) income tax purposes? Double-dedining balance o thi financial reporting purposes? Straight-line method
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