Question 38 Equipment was purchased for $296000 Freight charges amounted to $14400 and there was a cost of $40700 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60000 salvage value at the end of its 5-year usehd e Depreciation expense each year using the straight-line method will be O $48180 O $47200 O $58220 O $70220

Question 38 Equipment was purchased for $296000 Freight charges amounted to $14400 and there was a cost of $40700 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60000 salvage value at the end of its 5-year usehd e Depreciation expense each year using the straight-line method will be O $48180 O $47200 O $58220 O $70220

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

1. Use the following information about a newly acquired plant asset for cash. Record the information in a GJ form List Price $37,000 Sales Tax 2, 500 Freight Charges 2,800 Installation 700 Repairs due to breakage while unpacking equipment 400 2. On January 1, 2000, a piece of equipment was purchased at a cost of $26,000 and has an estimated salvage of $4,000. The estimated useful of the equipment is five years. Calculate the depreciation for 2000 & 2001 using the following methods: a. The straight-line method b. The double declining balance method
Question text Depreciation Choices and Outcome.Mulligan Co. purchased a new machine on January 1. The following information pertains to the purchase: Life of asset 5 years Salvage value $3,000 Purchase price 18,000 Sales tax 1,000 Freight cost 800 Electrical set-up 700 Custom programming 500 Estimated annual labor savings 3,500 Additional revenue generated 8,000 a. Determine the capitalized cost of the new machine$Answerb. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming:i. Straight-line depreciationii. Double-declining-balance method Straight-Line Depreciation Double-Declining Balance DepreciationExpense AccumulatedDepreciation Book Value atYear-end DepreciationExpense AccumulatedDepreciation Book Value atYear-End Year 1 Year 2 Year 3 c. Assume the machine is sold for $8,000 at the end of the third year after depreciation…
Create a units of production depreciation Cargo Van Price $26,000 Machine Price $48,000Salvage value $2,000 Salvage value $3,000Useful life 10 years Useful life 8 yearsTotal miles 90,000 Total hours 13,000Yr 1 miles 12,100 Yr 1 hours 1,250Yr 2 miles 9,400 Yr 2 hours 1,46
Complete the table
Solve this
Qw.25.
Hansaben
Historical cost $ 270,000 Estimated useful life 6 years Salvage value $ 24,000 Estimated useful hours 12,000 hours 3,100 2019 1,100 2020 1,200 2021 Estimated hours per year: 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Units of Production Method. Page Adventure Park, Corp. ciation Schedule - Units of Production Depreciation Accumulated Depreciable Year Expense Depreciation Cost 12.31.19 12.31.20 12.31.21 12.31.22 12.31.23 12.32.24 2 Record depreciation expense for 2020. General Journal DR CR 3 What is the net book value of the equipment on 12.31.20? Historical cost (Accumulated depreciation) Net book value at 12.31.20 |24
d. The depreciation deduction for year 11 of an asset with a 20-year useful life is $3,600. If the salvage value of the asset was estimated to be zero and straight line depreciation was used to calculate the depreciation deduction for year 11, the initial cost of this asset is most closely equal to which of the following values? (a) $42,000 (b) $67,750 $72,500 (d) $80,000 e. Consider the following data extracted from an After Tax Cash Flow calculation. Before Tax Cash Flow = $22,500 Loan Principal Payment = $7,434 Loan Interest Payment = $892 MACRS Depreciation Deduction = $7,405 Taxes Due = $5,397 Which of the following is closest to the After Tax Cash Flow? (a) $1,372 $8,777 (c) $8,806 (d) $16,211
2
am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev
nku.3