(Due: Sunday, 10/13, 11:00 PM CST) Holmes Packaging sold a machine for $49,500. The company bought this machine for $120,000 seven years ago and was depreciating it on a straight-line basis over ten years to a $12,000 salvage value. 1. What is the gain (loss) that Holmes Packaging should report? 2. Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000. This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be $9,000 What is the yearly depreciation expense under the straight-line method? Perfect Pastries buys a display case for her bakery business on January 1, 2019. The case cost $36,000 and is expected to be used for ten years. At the end of the ten years it is expected that the case can be sold for $4,000 3. Compute the depreciation expense for the third year (2021) using both straight-line and double-declining- balance depreciation methods. Kaitlin Block Publishing, a textbook publishing firm, purchased a new machine for $120,000. This machine is expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $9,000). 4. How much will the first and second year's depreciation expense be under the double-declining-balance method? 5. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old and had been depreciated using the double-declining-balance method, over a five-year useful life with a residual value of $18,000. Answer each of the following independent questions:
(Due: Sunday, 10/13, 11:00 PM CST) Holmes Packaging sold a machine for $49,500. The company bought this machine for $120,000 seven years ago and was depreciating it on a straight-line basis over ten years to a $12,000 salvage value. 1. What is the gain (loss) that Holmes Packaging should report? 2. Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000. This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be $9,000 What is the yearly depreciation expense under the straight-line method? Perfect Pastries buys a display case for her bakery business on January 1, 2019. The case cost $36,000 and is expected to be used for ten years. At the end of the ten years it is expected that the case can be sold for $4,000 3. Compute the depreciation expense for the third year (2021) using both straight-line and double-declining- balance depreciation methods. Kaitlin Block Publishing, a textbook publishing firm, purchased a new machine for $120,000. This machine is expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $9,000). 4. How much will the first and second year's depreciation expense be under the double-declining-balance method? 5. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old and had been depreciated using the double-declining-balance method, over a five-year useful life with a residual value of $18,000. Answer each of the following independent questions:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On question 3, would the answer be 3200 for straight line and 4608 for double declining or should I multiply that by 7 since it’s asking for third year
Transcribed Image Text:(Due: Sunday, 10/13, 11:00 PM CST)
Holmes Packaging sold a machine for $49,500. The company bought this machine for $120,000 seven years
ago and was depreciating it on a straight-line basis over ten years to a $12,000 salvage value.
1.
What is the gain (loss) that Holmes Packaging should report?
2. Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000.
This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be
$9,000
What is the yearly depreciation expense under the straight-line method?
Perfect Pastries buys a display case for her bakery business on January 1, 2019. The case cost $36,000 and
is expected to be used for ten years. At the end of the ten years it is expected that the case can be sold for
$4,000
3.
Compute the depreciation expense for the third year (2021) using both straight-line and double-declining-
balance depreciation methods.
Kaitlin Block Publishing, a textbook publishing firm, purchased a new machine for $120,000. This machine is
expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $9,000).
4.
How much will the first and second year's depreciation expense be under the double-declining-balance
method?
5. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old
and had been depreciated using the double-declining-balance method, over a five-year useful life with a
residual value of $18,000.
Answer each of the following independent questions:
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