Fixed Assets Mendenhall Corp constructed a building at a cost of 14,000,000. Weighted average accumulated expenditures were 5,600,000 actual interest was 560,000 and avoidable interest was 280,000. If the salvage value is 1,120,000 and the useful life is 40 years, depreciation expense for the first full year using the straight line method is?

Fixed Assets Mendenhall Corp constructed a building at a cost of 14,000,000. Weighted average accumulated expenditures were 5,600,000 actual interest was 560,000 and avoidable interest was 280,000. If the salvage value is 1,120,000 and the useful life is 40 years, depreciation expense for the first full year using the straight line method is?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 4RE: Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000...

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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?
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.
An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method
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The cost of an asset is $1,090,000, and its residual value is $240,000. Estimated useful life of the asset is eighteight years. Calculate depreciation for the first year using the doubleminus−decliningminus−balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) A. $106,250 B. $272,500 C. $136,250 D. $ 212,500
An asset with a first cost of $50,000 is to be depreciated by the straight line method over a 5-year period. The asset will have annual operating costs of$35,000 and a salvage value of $10,000. According to the straight line method, the book value at the end of year 3 will be closest to:a. $8000b. $20,000c. $24,000d. $26,000
The cost of an asset is $1,050,000, and its residual value is $280,000. Estimated useful life of the asset is eight years. Calculate depreciation for the second year using the double - declining – balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) A. $196,875 B. $131,250 C. $192,500 D. $96,250
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An equipment costing P250, 000 has an estimated life of 15 years with a salvage value of P30, 000 at the end of the per i od. Compute the depreciation charge and its book value after 10 years using declining balance method.
A MACRS-depreciated asset has B = $100,000, S = $40,000, and a 10-year recovery period. (The dt values for years t = 1, 2, 3, 4 and 5 are 10.00%, 18.00%, 14.40%, 11.52%, and 9.22%, respectively.) The depreciation charge for year 4 according to the MACRS method is closest to:a. $58,700b. $62,400c. $11,500d. $46,100