Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is depreciated using the straight-Iine method. The machine's useful life is estimated to be 8 years with a $3,000 salvage value. The book value of the machine at the end of year 2 is: Multiple Choice $4,750 $9,500. $28,500. $31,500.

Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is depreciated using the straight-Iine method. The machine's useful life is estimated to be 8 years with a $3,000 salvage value. The book value of the machine at the end of year 2 is: Multiple Choice $4,750 $9,500. $28,500. $31,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An asset was purchased and installed for $304781. The asset is classified as MACRS 7year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $22765. Using MACRS depreciation, the third year depreciation is: Enter your answer as: 123456.78 53306.2000
Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be us for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determir that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. $ 171,000 B. Determine the depreciation expense for the final fifteen years of the asset's life. 11,400 X Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Depreciation Expense 171,000 X Accumulated Depreciation-Warehouse 171,000
es Apex Fitness Club uses straight-line depreciation for a machine costing $23,250, with an estimated four-year life and a $2,400 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 $1,950 salvage value. 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. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
Please help me . Thankyou.
The pharmacy’s delivery van cost $12,000.00. Its estimated useful life is 10 years, and the disposal value is $1,500.00. What is the annual depreciation? (round to the nearest whole number) Group of answer choices $1,050.00 $3,000.00 $2,700.00 $11,850.00
XYZ Corporation has purchased a new piece of machinery for $75,000. The piece of equipment should last for 8 years and will have a $5,000 salvage value at the end of its useful life. They plan on using the unit-of-production depreciation method. Use the production information below to calculate the estimated depreciation information for each year. Year Units Produced 1 8,000 2 10,000 3 12,000 4 14,000 5 12,000 6 10,000 7 8,000 8 5,000
A building was purchased for $68,000. The asset has an expected service life of eight years and depreciation expense each year is $5,000 using the straight-line method. What is the residual value of the building? Multiple Choice $0 $28,000 $8,500 $13,500
shobha
Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $271,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Depreciation expense Year Annual Depreciation Year-End Book Value Year 1 Year 2 Year 3 Year 4 Total
s
Becker Office Service purchased a new computer system on January 1, Year 1, for $36,100. It is expected to have a five-year useful life and a $3,800 salvage value Becker Office Service expects to use the computer system more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. b. Calculate the depreciation expense for each of the five years, assuming the use of double-declining balance depreciation. d. Assume that Becker Office Service sold the computer system at the end of the fourth year for $20.500 Compute the amount of gain or loss using each depreciation method. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. Year 1 2 3 4 5 Required D Annual Depreciation Required B >
Purchased the machine for $15,500 with a down payment of 300. Additional costs for purchasing the machine paid for in cash by the company were a $500 machine test fee and a $500 shipping service fee. The machine can be used for 5 years with a total machine working hours of 35,000 hours. The salvage value of the machine at the end of year 5 is $1,500. At the end of year 4 the machine underwent a revision of its useful life period. The machine can still be used for 2 more years. At the end of year 5 the company decides to sell the machine for cash for $2,750. Required: calculate the cost of the machine, calculate the depreciation for the year before and after the revision, calculate the book value of the machine for year 4, calculate the profit and loss from the sale of the machine, make journals for all these transactions. Note: Include the method of processing in answering the questions and the excel formula