Problem 1 A schedule of machinery owned by Trust Company is presented below: Machine A Machine B Machine C Total Cost 2,500,000.00 1,200,000.00 380,000.00 Estimated Salvage Estimated life in Value years 566,665.00 320,000.00 18.00 10.00 4.00 Trust Company computes depreciation on the straight line method. Required: Based upon the information presented, 1) what is the composite life of these assets? 2) what is the composite rate?

Problem 1 A schedule of machinery owned by Trust Company is presented below: Machine A Machine B Machine C Total Cost 2,500,000.00 1,200,000.00 380,000.00 Estimated Salvage Estimated life in Value years 566,665.00 320,000.00 18.00 10.00 4.00 Trust Company computes depreciation on the straight line method. Required: Based upon the information presented, 1) what is the composite life of these assets? 2) what is the composite rate?

Name: Problem 1A schedule of machinery owned by Trust Company is presented
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Description: Problem 1A schedule of machinery owned by Trust Company is presented below:Machine AMachine BMachine CTotal Cost2,500,000.001,200,000.00380,000.00Estimated Salvage Estimated life inValueyears566,665.00320,000.0018.0010.004.00Trust Company computes d

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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The following data relate to the Machinery account of Wildhorse, Inc. at December 31, 2025. Original cost Year purchased Useful life Salvage value Depreciation method Accum. depr. through 2025* a. Cash A Machinery (Machine A) $54,280 2020 15,340 10 years $3,658 Sum-of-the-years'-digits $36,816 B 15,340 $60,180 2021 Machinery 15,000 hours $3,540 Activity $41,536 C $94,400 2022 15 years $5,900 Straight-line $17,700 D $94,400 *In the year an asset is purchased, Wildhorse, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Wildhorse, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2026. 2024 10 years $5,900 On May 5, Machine A was sold for $15,340 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Double-declining balance $18,880
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m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
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A schedule of machinery owned by Colsen Co. is presented below: Estimated Estimated Total Cost Salvage life in Value years Machine A 260,000.00 20,000.00 12 Machine C 390,000.00 30,000.00 10 Machine 195,000.00 15,000.00 6 M Colsen computes depreciation composite method. by the The composite life (in years) for these assets is O 9.1 10 9.3 9.8 O
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A schedule of machinery owned by Micco Co. is presented below: Estimated Estimated Salvage Value Life in Years Machine X $600,000 $40,000 14 Machine Y 800,000 80,000 Machine Z 300,000 60,000 Micco computes depreciation by the composite method. The composite life (in years) for these assets is 15.6 10.0 8.9 Total Cost 8.6 10 6
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gnment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-&inprogress-false Book Show Me How Calculator Print Item Comparing three depreciation methods Depreciation Expense Final Questions Instructions Dexter Industries purchased packaging equipment on January 8 for $72,.000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method, Also determine the total depreciation expense for the three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar) 2. What method yields the highest depreciation…