Acme Corp. purchased a new machine that is expected to be used in manufacturing for 5 years for $48,000. The salvage value of the machine after 5 years is $3000. Assume the machine was purchased on the first day of the fiscal year so no partial-year depreciation is needed. Using the Straight Line Depreciation Method, what is the value of accumulated depreciation at the end of year 3?

Acme Corp. purchased a new machine that is expected to be used in manufacturing for 5 years for $48,000. The salvage value of the machine after 5 years is $3000. Assume the machine was purchased on the first day of the fiscal year so no partial-year depreciation is needed. Using the Straight Line Depreciation Method, what is the value of accumulated depreciation at the end of year 3?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
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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 ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
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