Revision of DepreciationEquipment with a cost of $354,500 has an estimated residual value of $38,000, has an estimated useful life of 15 years, and is depreciatedby the straight-line method.a. Determine the amount of the annual depreciation.21,100 Vb. Determine the book value after 10 full years of use.c. Assuming that at the start of the year 11 the remaíning life is estimated to be 8 years and the residual value is estimated to be $38,700,determine the depreciation expense for each of the remaining 8 years.FeedbackCheck My ViorkStraight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life.The book value is the foxed asset cost less accumulated depreciation.Revising depreciation is necessary when estimates of residual values and/or useful lives of foced assets change due to abnormal wear and tear orobsolescence

Depreciation can be defined as a non-cash expenditure that is charged against the value of a fixed…

Answered: Revision of Depreciation Equipment with…

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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N1. Account A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method, the sum-of-the-years method, and the 200% declining-balance method with a recovery period of five years. Compare these depreciation methods in a graph.
Revision of Depreciation A building with a cost of $168,750 has an estimated residual value of $33,750, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation?
Copy equipment was acquired at the beginning of the year at a cost of $51,850 that has an estimated residual value of $4,700 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 943,000 copies. This year, 204,000 copies were made. a. Determine the depreciable cost.$fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places.$fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year.$fill in the blank 3
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $116,500 has an estimated residual value of $4,500 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate 10 V % (c) The annual straight-line depreciation $
Equipment with a cost of $446,900 has an estimated residual value of $51,400, has an estimated useful life of 35 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. b. Determine the book value at the end of the 20 full years of use. c. Assuming that at the start of the year 21 the remaining life is estimated to be 22 years and the residual value is estimated to be $53,700, determine the depreciation expense for each of the remaining 22 years.
A building with a cost of $247,500 has an estimated residual value of $49,500, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? Do not round intermediate calculations. $ b. What is the book value at the end of the fifth year of use? $ c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $12,500, what is the depreciation expense for each of the remaining 5 years?
Assume that an asset costing $72,000 is expected to produce 500,000 units and have a salvage value of $6,000. The first year, 90,000 units are produced; the second year, 82,000 units are produced; the third year, 94,000 units are produced. Using the units-of-production method, complete the following: Year DepreciationExpense BookValue 0 — $72,000 1 fill in the blank 1 fill in the blank 2 2 fill in the blank 3 fill in the blank 4 3 fill in the blank 5
Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a. Straight-line
Revision of depreciation. Equipment with a cost of $698,500 has an estimated residual value of $63,500, has an estimated useful life of 25 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 13 full years of use. c. Assuming that at the start of the year 14 the remaining life is estimated to be 18 years and the residual value is estimated to be $53,300, determine the depreciation expense for each of the remaining 18 years.
Equipment costing $71000 with a salvage value of $13000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for year 3 would be?
A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.$ b. Determine the book value at the end of the seventh year of use.$ c. Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $15,000, determine the depreciation expense for each of the remaining five years.$
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $134,200 has an estimated residual value of $5,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate % (c) The annual straight-line depreciation

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