Apex Industries purchased a new manufacturing machine that cost $385,000 on January 1, Year 1. The machine had an expected useful life of eight years and an estimated salvage value of $25,000. Assuming that Apex depreciates its assets using the straight-line method, what would be the amount of depreciation expense appearing on the Year 1 income statement?

Apex Industries purchased a new manufacturing machine that cost $385,000 on January 1, Year 1. The machine had an expected useful life of eight years and an estimated salvage value of $25,000. Assuming that Apex depreciates its assets using the straight-line method, what would be the amount of depreciation expense appearing on the Year 1 income statement?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
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Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
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