Holly, Inc. has a building that originally cost $400,000. Holly expects to be able to sell the facility for $256,000 at the end of its useful life. The balance of the related Accumulated Depreciation account is $117,000. The residual value of the facility is: Multiple Choice A. $144,000. B. $256,000. C. $283,000. D. $139,000.
Part 1
Holly, Inc. has a building that originally cost $400,000. Holly expects to be able to sell the facility for $256,000 at the end of its useful life. The balance of the related
B. $256,000.
Part 2
A company bought a piece of equipment for $40,200 and expects to use it for eight years. The company then plans to sell it for $4,300. The company has already recorded depreciation of $34,833.95. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year? (Round your answer to the nearest whole dollar amount.)
A. $1,066.
B. $1,342.
C. $9,150.
D. $10,200.
Part 3
A company purchased land for its natural resources at a cost of $1,570,000. It expects to mine 2,175,000 tons of ore from this land. The residual value of the land is estimated to be $355,000. What is the amount of depletion per ton of ore?
Part 4
Pebble Beach Co. buys a piece of equipment for $54,000. The equipment has a useful life of five years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment’s useful life? (Do not round intermediate calculations.)
Part 5
A company paid $511,000 to purchase equipment and $16,100 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 29,100 hours throughout its estimated useful life of seven years. The estimated residual value of the equipment is $6,100. The company began using the equipment on May 1, 2018. The company has an October 31, 2018 year-end. It used the equipment for a total of 12,300 hours between May 1 and October 31, 2018. Using the units-of-production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2018?
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