Apex Manufacturing acquired new production equipment for $480,000 on April 1, 2023. The equipment has an estimated useful life of 8 years with a $40,000 salvage value. Apex records partial-year depreciation based on the number of months in service. What is the depreciation expense for the year ended December 31, 2023, using the straight-line method?

Apex Manufacturing acquired new production equipment for $480,000 on April 1, 2023. The equipment has an estimated useful life of 8 years with a $40,000 salvage value. Apex records partial-year depreciation based on the number of months in service. What is the depreciation expense for the year ended December 31, 2023, using the straight-line method?

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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
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