Rosemarie Lee bought mactinery for $40,000. At the end of its usoful libe of 4 years, the tesidual or resale value will be $4,000. Caloulate the arnualdepreciation using: Straight-fine method and Accelorated Depreciation method at a rate of 30%Rosemarie Lee bought machinery for $40,000. At the end of its useful life of 4 years, the residual or resale value will be $4,000. Calculate the annual depreciation using1. Straight-line method and2. Accelerated Depreciation method at a rate of 30%

Depreciation is a crucial accounting concept that allocates the cost of a long-term asset over its…

Answered: Rosemarie Lee bought mactinery for…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...

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Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
A 7 year property class was purchased for $115,000. The owner took depreciation charges using MACRS each year. The asset was sold at a market value of $122,200 at the end of the 3rd year. The recaptured depreciation is most nearly: i. $115,000 ii. $79,074 iii. $64,710 iv. $50,290 v. $44,6000 vi. $20,113 viii. $7,000 ix. $0 Please use excel and show formulas.
Avalon Industries buys equipment for $90,000, expects to use it for six years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: Multiple Choice O $15,000. O O $14,000. $28,000. $31,750.
Helena acquire an asset that had a cost of P130,000. The asset is being depreciated over a 5-yeat period using the sum-of-the-years' digit method. It has a salvage value estimated at P10,000. Required: The loss/gain if the asset is sold for P38,000 at the end of the third year is:
Waller Company purchased equipment for $24,000. The company is considering whether todetermine annual depreciation using the straight-line method or the declining-balance method at150 percent of the straight-line rate. Waller expects to use the equipment for 10 years, at the endof which it will have an estimated salvage value of $4,000. Prepare a comparison of these twoalternatives for the first two years Waller will own the equipment.
1. Waller Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the straight-line method or the declining-balance method at 150 percent of the straight-line rate. Waller expects to use the equipment for 10 years, at the end of which it will have an estimated salvage value of $4,000. Prepare a comparison of these two alternatives for the first two years Waller will own the equipment. .
Alfredo Company purchased a new 3-D printer for $90,000. This printer is expected to last for ten years, at which time, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method. PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Year 1 Depreciation: _________________ Year 2 Depreciation: _________________ Year 3 Depreciation: _________________ Year 4 Depreciation: _________________ Year 5 Depreciation: _________________ Year 6 Depreciation: _________________ Year 7 Depreciation: _________________ Year 8 Depreciation: _________________ Year 9 Depreciation: _________________ Year 10 Depreciation: _________________
Alpha purchased delivery equipment amounting to P100,000 and plans to sell the asset for P10,000 at the end of 5 years. How much is the annual depreciation
Anax Corporation purchased a long-term asset for $100,000. The asset has a 30% CCA rate. At the end of year 5, Anax sold the asset for 25% of its original value. Given this information, determine the value of the terminal loss or recapture at the end of year 5. (Show all the required steps) Solution

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