Blossom Computer Company sold two pieces of equipment in 2028. The following information pertains to the two pieces ofequipment:Machine#1#2Cost$68,800$76,000Purchase Useful SalvageDateLifeValue7/1/241/1/275 yrs.5 yrs.$4,800$4,000DepreciationMethodStraight-lineDate Sold7/1/28Double-declining-balance 12/31/281SalesPrice$16,000$29,600 Compute the depreciation on each piece of equipment to the date of disposal.Machine #1Year20242025202620272028Machine #2Year$2027 $2028AnnualDepreciationAnnualDepreciation$$AccumulatedDepreciationAccumulatedDepreciation

Straight-Line Method (SLM) and Double Declining Balance Method (DDB) are two common methods used for…

Machine Cost #1 #2 $68,800 $76,000 Purchase Useful Date Life 7/1/24 1/1/27 5 yrs. 5 yrs. Salvage Value $4,800 $4,000 Depreciation Method Straight-line Double-declining-balance Date Sold 7/1/28 12/31/28 Sales Price $16,000 $29,600

Machine Cost #1 #2 $68,800 $76,000 Purchase Useful Date Life 7/1/24 1/1/27 5 yrs. 5 yrs. Salvage Value $4,800 $4,000 Depreciation Method Straight-line Double-declining-balance Date Sold 7/1/28 12/31/28 Sales Price $16,000 $29,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Blossom Computer Company sold two pieces of equipment in 2028. The following information pertains to the two pieces of
equipment:
Machine
#1
#2
Cost
$68,800
$76,000
Purchase Useful Salvage
Date
Life
Value
7/1/24
1/1/27
5 yrs.
5 yrs.
$4,800
$4,000
Depreciation
Method
Straight-line
Date Sold
7/1/28
Double-declining-balance 12/31/281
Sales
Price
$16,000
$29,600

Compute the depreciation on each piece of equipment to the date of disposal.
Machine #1
Year
2024
2025
2026
2027
2028
Machine #2
Year
$
2027 $
2028
Annual
Depreciation
Annual
Depreciation
$
$
Accumulated
Depreciation
Accumulated
Depreciation

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