On January 1, A Company purchased a new machinery costing $80,000, having estimated useful life of 5 years, and salvage value of $5,000.Calculate depreciation expense for year 5 using straight-line method and double-declining balance method of depreciation.Depreciation expense for year 5 according to straight-line method and double-declining balance method are $16,000 and $5,000, respectivelyDepreciation expense for year 5 according to straight-line method and double-declining balance method are $15,000 and $6,912, respectivelyDepreciation expense for year 5 according to straight-line method and double-declining balance method are $15,000 and $5,368, respectivelyDepreciation expense for year 5 according to straight-line method and double-declining balance method are $15,000 and $5,000, respectively

In the straight-line method of depreciation, the value of the asset is reduced equally over each…

Answered: On January 1, A Company purchased a new…

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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A building is acquired on January 1, at a cost of $900,000 with an estimated useful life of 10 years and salvage value of $81,000. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
A plant asset was purchased on January 1 for $120000 with an estimated salvage value of $10000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $60000. The remaining useful life of the plant asset is 5 years. O. 11 years. O 12 years. O 7 years.
Machinery was purchased on January 1 for $52,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be:
Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a salvage value of $11,000 at the end of its 10-year useful life.Compute annual depreciation expense for the first and second years using the straight-line method.
A truck acquired at a cost of $195,000 has an estimated residual value of $11,250, has an estimated useful life of 35,000 miles, and was driven 2,800 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate per mile (c) The units-of-activity depreciation for the year
Printing equipment was acquired at the beginning of the year at a cost of $66721 that has an estimated residual value of $4765 and an estimated useful life of 6 years. Determine the annual straight-line depreciation. ROUND TO THE NEAREST DOLLAR
A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of $2,000, and a 5-year useful life. At the beginning of year 4 of its useful life, the estimate of the salvage value was reduced to $1,200 and its total useful life was increased to 6 years. The amount of depreciation that will be recorded during each of the remaining years of its useful life is: $2,000 $6,000 $1,600 $2,400
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $41,420. a. What was the depreciation for the first year? Round your answer to the nearest cent. 2$ b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $97,086. Round your answer to the nearest cent. Enter your answer as a positive amount. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Layton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200. The equipment was used for 1,350 hours during Year 1, 4,200 hours in Year 2, 3,650 hours in Year 3, and 2,800 hours in Year 4. In a table show depreciation expense, accumulated deprecation at the end of the year, beginning and ending book value (Use double declining method only) Cost Beginning Book Value Accumulated Deprecation Depreciation expense Book value at End
Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation method.
A building is acquired on January 1, at a cost of $900,000 with an estimated useful life of 10 years and salvage value of $81,000. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
An asset was purchased for $101,000 on January 1, Year 1, and originally estimated to have a useful life of 12 years with a residual value of $14,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,200. Compute the third-year depreciation expense using the revised amounts and straight-line method. Oa. $22,075.00 Ob. $21,075.00 Oc. $20,075.00 Od. $21,575.00

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