Equipment records for Johnson Machine Co. for the year follow, Joheson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired. Asset Purchase Price Useful Life 8 years " 3 $20,650 24,310 17,430 14,920 37,520 Truck #1 Truck #2 Tractor #1 Tractor #2 Forklift Required: 1. Calculate the depreciation expense for Juhnson Machine as of December 31, 20 12,950 X 6 Salvage Value $4,170 3,990 3.100 10 Date Purchased 2,000 3,020 January 1 Apr 10 May 1 June 18 September 1
Equipment records for Johnson Machine Co. for the year follow, Joheson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired. Asset Purchase Price Useful Life 8 years " 3 $20,650 24,310 17,430 14,920 37,520 Truck #1 Truck #2 Tractor #1 Tractor #2 Forklift Required: 1. Calculate the depreciation expense for Juhnson Machine as of December 31, 20 12,950 X 6 Salvage Value $4,170 3,990 3.100 10 Date Purchased 2,000 3,020 January 1 Apr 10 May 1 June 18 September 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Equipment records for Johnson Machine Co. for the year follow, Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month,
depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset
was acquired.
Asset
Truck #1
Truck #2
Tractor #1
Tractor #21
Purchase
Price
$20,650
24,310
17,430
14,920
37,520
Useful Life
8 years
11
5
6
10
Salvage
Value
$4,170
3,900
3,100
2,000
3,920
Date
Purchased
January 1
April 10
May 1
June 18
September 1
Required:
1. Calculate the depreciation expense for Johnson Machine as of December 31, 20
12,950 X
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