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Pincer Company uses the declining balance depreciation method. It buys a machine for $104,900 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents). Required 1: What depreciation expense will Pincer record in year 2? $ Required 2: What depreciation expense will Pincer record in year 3? $ Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $ Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $

Pincer Company uses the declining balance depreciation method. It buys a machine for $104,900 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents). Required 1: What depreciation expense will Pincer record in year 2? $ Required 2: What depreciation expense will Pincer record in year 3? $ Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $ Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $

FINANCIAL ACCOUNTING
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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Pincer Company uses the declining balance depreciation method. It buys a machine for $104,900 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents). Required 1: What depreciation expense will Pincer record in year 2? $ Required 2: What depreciation expense will Pincer record in year 3? $ Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $ Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $
Transcribed Image Text:Pincer Company uses the declining balance depreciation method. It buys a machine for $104,900 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents). Required 1: What depreciation expense will Pincer record in year 2? $ Required 2: What depreciation expense will Pincer record in year 3? $ Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $ Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $
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