ANSWER Equipment with a cost of $1,912,000 has an estimatedsalvage value of $52,000 and an estimated life of 4 yearsor 47,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for thefirst full year, during which the equipment was used for9,200 hours?

Explanation of Units-of-Activity Depreciation Method: This is a depreciation method that allocates…

Answered: Equipment with a cost of $1,912,000 has…

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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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
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 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
Equipment with a cost of $1,912,000 has an estimated salvage value of $52,000 and an estimated life of 4 years or 47,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 9,200 hours?
Equipment with a cost of $148,651 has an estimated residual value of $8,247 and an estimated life of 7 years or 13,538 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,010 hours?
Equipment with a cost of $477400 has an estimated salvage value of $55000 and an estimated life of 4 years or 8800 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 2200 hours?
Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated life of 7 years or 14,290 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,563 hours? Select the correct answer. $35,056.53 $20,085.71 $39.46 $7.00
A machine with a cost of $474000 has an estimated salvage value of $24000 and an estimated useful life of 5 years or 10000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5000 hours?
Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated lifeof 4 years or 10,000 hours. It is to be depreciated by the declining balance method (double). What is theamount of depreciation for the first full year, during which the equipment was used 2,700 hours?
A machine of AY Company with a cost of 400,000 has an estimated residual value of 25,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
A machine with a cost of $750,000 has an estimated salvage value of $100,000) and an estimated useful life of 5 years or 30,000 hours. It is to be depreciated using the units-of-activity method of depreciation. The machine was used for 7,000 hours in the first year and 9,000 hours in the second year. Calculate the depreciation expense for the second year using the units of activity method. (Please round answer to the nearest dollar, i.e. 3,078.666 would be entered as 3,079)

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