CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3) (The following information applies to the questions displayed below) At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The machinery initially cost $30,800 but had to be overhauled (at a cost of $2.240) before it could be installed (at a cost of $1,120) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1.000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $480 in each year. The shelving cost $9,950 and was expected to last 5 years, with a residual value of $730. The forklift cost $16,650 and was expected to last six years, with a residual value of $2,260. CP9-1 (Algo) Part 4 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.

CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3) (The following information applies to the questions displayed below) At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The machinery initially cost $30,800 but had to be overhauled (at a cost of $2.240) before it could be installed (at a cost of $1,120) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1.000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $480 in each year. The shelving cost $9,950 and was expected to last 5 years, with a residual value of $730. The forklift cost $16,650 and was expected to last six years, with a residual value of $2,260. CP9-1 (Algo) Part 4 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.

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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