On January 1, 2020, Bonita SA purchased the following two machines for use in its production process. Machine A: The cash price of this machine was R$40,000. Related expenditures included: sales tax R$3,200, shipping costs R$200, insurance during shipping R$50, installation and testing costs R$90, and R$150 of oil and lubricants to be used with the machinery during its first year of operations. Bonita estimates that the useful life of the machine is 5 years with a R$5,900 residual value remaining at the end of that time period. Assume that the straight- line method of depreciation is used. Mahshine B: The recorded cost of this machine was R$81,600. Bonita estimates that the useful life of the machine is 4 years with a R$4,100 residual value remaining at the end of that time period. Calculate the amount of depreciation expense that Bonita should record for Machine B each year of its useful life under the following assumptions. (Round answers to 0 decimal places, e.g. 2,125. Round cost per unit to 2 decimal place, e.g. 1.25.)

On January 1, 2020, Bonita SA purchased the following two machines for use in its production process. Machine A: The cash price of this machine was R$40,000. Related expenditures included: sales tax R$3,200, shipping costs R$200, insurance during shipping R$50, installation and testing costs R$90, and R$150 of oil and lubricants to be used with the machinery during its first year of operations. Bonita estimates that the useful life of the machine is 5 years with a R$5,900 residual value remaining at the end of that time period. Assume that the straight- line method of depreciation is used. Mahshine B: The recorded cost of this machine was R$81,600. Bonita estimates that the useful life of the machine is 4 years with a R$4,100 residual value remaining at the end of that time period. Calculate the amount of depreciation expense that Bonita should record for Machine B each year of its useful life under the following assumptions. (Round answers to 0 decimal places, e.g. 2,125. Round cost per unit to 2 decimal place, e.g. 1.25.)

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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