General Accounting Crane Company constructed a building at a cost of $29,850,000. Weighted-averageaccumulated expenditures were $11,000,000, actual interest was $1,100,000, andavoidable interest was $590,000. If the salvage value is $2,300,000, and the usefullife is 40 years, depreciation expense for the first full year using the straight-linemethod is:A. $703,500.B. $731,500.C. $761,000.D. $979,000.

Original Cost and Salvage ValueThe original cost of the building is $29,850,000, and the salvage…

Answered: Crane Company constructed a building at…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated expenditures were 5,600,000, actual interest was 562,000, and avoidable interest was 272,000. Salvage value is 1,150,000, and the useful life is 40 years. Calculate depreciation expense for the first full year using the slm method.
Hall Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures were $4,000,000, actual interest was $600,000, and avoidable interest was $300,000. If the salvage value is $800,000, and the useful life is 40 years, what is the depreciation expense for the first full year using the straight-line method? $Answer
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CPJ Enterprise constructed a building at a cost of $24,000,000. Average accumulated expenditures were $17,000,000, actual interest was $2,120,000, and avoidable interest was $1,600,000. The salvage value of the new building is $4,600,000, with an estimated useful life is 30 years. What is the building’s depreciation expense for the first full year using the straight-line method? $Answer
Concord Corporation constructed a building at a cost of $13650000. Weighted-average accumulated expenditures were $5600000, actual interest was $562000, and avoidable interest was $272000. If the salvage value is $1150000, and the useful life is 40 years. What will be the depreciation expense for the first full year using the straight-line method (SLM)?
A machine cost RO 50,000 and its estimated salvage value is RO 5000 and its expected life is eight years. The depreciation expense using Straight-line for the first year is:
Standard company constructed a building which costs 13650000. Weighted-average accumulated expenditures was amounted to 5600000, actual interest amount was at 562,000. Avoidable interest was 272,000. If the salvage value is 1150000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method(SLM) is A.319,300 B.348,050 C.326,100 D.459,300
Zed Inc constructed a building at a cost of $13650000. Weighted-average accumulated expenditures were $5600000, actual interest was $562000, and avoidable interest was $272000. If the salvage value is $1150000, and the useful life is 40 years. What will be the depreciation expense for the first full year using the straight-line method?

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