Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 salvagevalue. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which itwill have an estimated $2,000 salvage value.1Required:1. Compute the machine's book value at the end of its second year.2. Compute the amount of depreciation for each of the final three years given the revised estimates.polntsеВokComplete this question by entering your answers in the tabs below.HintRequired 1Required 2Compute the machine's book value at the end of its second year.PrintBook Value at the End of Year 2:CostAccumulated depreciation 2 yearsBook value at point of revisionReferences Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 salvagevalue. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which itwill have an estimated $2,000 salvage value.1Required:1. Compute the machine's book value at the end of its second year.2. Compute the amount of depreciation for each of the final three years given the revised estimatespolntsеВookComplete this question by entering your answers in the tabs below.HintRequired 1Required 2Compute the amount of depreciation for each of the final three years given the revised estimates.PrintRevised Depreciation (Years 3-5)Book value at point of revisionReferencesRevised salvage valueRemaining depreciable costYears of life remainingRevised annual depreciation years 3-5Required 1Required 2

Calculation of machine’s book value:Results of formulas used in excel sheet is as follows:

Answered: Apex Fitness Club uses straight-line…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life.The truck is estimated to be driven 100,000 miles. Instructions: 1. Compute annual depreciation expense for the first and second years using the straight-line method. 2. Compute annual depreciation expense for the first and second years using the units of activity method. The truck is driven 20,000 miles the first year and 30,000 miles the second year. 3. Compute annual depreciation expense for all 4 years using the double declining balance method.
A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $1,110,000. It will have a salvage value of $76,000 after a useful life of 10 years. Part a Using the formulas, determine the depreciation charge for year 8 and the book value at the end of year 8 if straight-line depreciation is used. Depreciation charge: Book value: $ $
Apex Fitness Club uses straight-line depreciation for a machine costing $29,750, with an estimated four-year life and a $2,600 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,150 salvage value. Required: 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers In the tabs below. ces Required 1 Required 2 Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar.) Revised Depreciation (Years 3-5) Book value at point of revision Revised salvage value Remaining depreciable cost Years of life remaining Revised annual depreciation years 3-5
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es Apex Fitness Club uses straight-line depreciation for a machine costing $23,250, with an estimated four-year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,950 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
Please help me . Thankyou.
Cheetah Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,500 2 2,200 3 1,900 4 2,000 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule—Activity-Based End of Year Amounts Year Depreciation Expense Accumulated Depreciation Book Value 1 2 3 4 Total
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Cheetah Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,500 2 2,200 3 1,900 4 2,000 Required: 1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) CHEETAH COPY Depreciation Schedule—Straight-Line End of Year Amounts Year Depreciation Expense Accumulated Depreciation Book Value 1 $22,500 $22,500 2 22,500 3 22,500 4 22,500 Total $90,000
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