Apex Fitness Club uses straight-line depreciation for a machine costing $29,750, with an estimated four-year life and a $2,600 salvagevalue. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which itwill have an estimated $2,150 salvage value.Required:1. Compute the machine's book value at the end of its second year.2. Compute the amount of depreciation for each of the final three years given the revised estimates.Complete this question by entering your answers In the tabs below.cesRequired 1Required 2Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round Intermediatecalculations. Round your answers to the nearest whole dollar.)Revised Depreciation (Years 3-5)Book value at point of revisionRevised salvage valueRemaining depreciable costYears of life remainingRevised annual depreciation years 3-5

Annual depreciation = (Cost - Salvage value)/Estimated useful life Cost $29,750 Salvage value…

Answered: machine's book value at the end of its…

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machine's book value at the end of its second year. e amount of depreciation for each of the final three ye

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

Apex Fitness Club uses straight-line depreciation for a machine costing $29,750, with an estimated four-year life and a $2,600 salvage
value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it
will have an estimated $2,150 salvage value.
Required:
1. Compute the machine's book value at the end of its second year.
2. Compute the amount of depreciation for each of the final three years given the revised estimates.
Complete this question by entering your answers In the tabs below.
ces
Required 1
Required 2
Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round Intermediate
calculations. Round your answers to the nearest whole dollar.)
Revised Depreciation (Years 3-5)
Book value at point of revision
Revised salvage value
Remaining depreciable cost
Years of life remaining
Revised annual depreciation years 3-5

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