10. ABC Company acquired a factory building, equipment, and machinery on January 1, 20X0. The cost of each asset acquired and other relevant information are as follows:Building - 4,200,000 cost; 200,000 residual value; 20 years useful life; Sum-of-the-years digit depreciation method.Equipment - 1,650,000 cost; 50,000 residual value; 8 years useful life; Double declining balance depreciation method.Machinery - 900,000 cost - 5 years useful life - Service hours method depreciation method. The service hours of the machine each year from the year of acquisition are 5,000; 4,000; 3,000; 2,000; and 1,000, respectively.What is the accumulated depreciation balance at the end of 20X1?

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Answered: Building - 4,200,000 cost; 200,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10. ABC Company acquired a factory building, equipment, and machinery on January 1, 20X0. The cost of each asset acquired and other relevant information are as follows:

Building - 4,200,000 cost; 200,000 residual value; 20 years useful life; Sum-of-the-years digit depreciation method.
Equipment - 1,650,000 cost; 50,000 residual value; 8 years useful life; Double declining balance depreciation method.
Machinery - 900,000 cost - 5 years useful life - Service hours method depreciation method. The service hours of the machine each year from the year of acquisition are 5,000; 4,000; 3,000; 2,000; and 1,000, respectively.

What is the accumulated depreciation balance at the end of 20X1?

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