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? Want Answer

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? Want Answer

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 $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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?
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
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CPJ Enterprise constructed a building at a cost of $24,000,000. Average accumulated expenditures were $17,000,000, actual interest was $2,120,000, and avoidable interest was $1,600,000. The salvage value of the new building is $4,600,000, with an estimated useful life is 30 years. What is the building’s depreciation expense for the first full year using the straight-line method? $Answer
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An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
A bulldozer has an initial cost of Php 2,000,000. Its salvage value after 12 years is Php 175,000. As a percentage of the initial cost, what is the straight- line depreciation rate of the equipment? O 7.6041% O 6.6041% O 8.6041% O 5.6041%
A machine cost 75,000 and the salvage value is 15,000 after 15 years. Find, a) the depreciation by Straight Line Method if i = 15% b) the depreciation by Sinking Fund Method if i = 15% c) the depreciation charge at the end of 4th year by Declining Balance Method, Double Declining Balance Method and Sum of Years Digit Method d) the book value after 8 years by SLM, SFM, DBM, DDBM and SYDM Please follow the format in answering. 1. Given 2. Required 3. Formula used 4. Cash flow diagram/ cash flow sketch: 5. Solutions (w/ explanation)