Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, 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 $2,000 salvage value. 1 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. polnts еВok Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Compute the machine's book value at the end of its second year. Print Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision References
Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, 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 $2,000 salvage value. 1 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. polnts еВok Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Compute the machine's book value at the end of its second year. Print Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision References
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, 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 $2,000 salvage value.
1
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.
polnts
еВok
Complete this question by entering your answers in the tabs below.
Hint
Required 1
Required 2
Compute the machine's book value at the end of its second year.
Print
Book Value at the End of Year 2:
Cost
Accumulated depreciation 2 years
Book value at point of revision
References
<Required 1
Required 2
Transcribed Image Text:Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, 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 $2,000 salvage value.
1
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
polnts
еВook
Complete this question by entering your answers in the tabs below.
Hint
Required 1
Required 2
Compute the amount of depreciation for each of the final three years given the revised estimates.
Print
Revised Depreciation (Years 3-5)
Book value at point of revision
References
Revised salvage value
Remaining depreciable cost
Years of life remaining
Revised annual depreciation years 3-5
Required 1
Required 2
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