Shearer’s Foods, part of the $374 billion global snack food industry, employs 3,300 people in Brewster, Ohio. If Shearer’s purchased a packaging unit for $193,160 with a life expectancy of 696,000 units and a residual value of $47,000, what is the depreciation expense for year 1 if 76,000 units were produced? 2. Lena Horn bought a Toyota Tundra on January 1 for $30,800 with an estimated life of 6 years. The residual value of the truck is $4,400. Assume a straight-line method of depreciation. What will be the book value of the truck at the end of year 4? If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year? 3. Jim Company bought a machine for $43,200 with an estimated life of 5 years. The residual value of the machine is $7,200. Assume straight-line depreciation. Calculate the annual depreciation. Calculate the book value at the end of year 3. 4. Jim Company bought a machine for $54,260 with an estimated life of 5 years. The residual value of the machine is $7,100. This machine is expected to produce 131,000 units. In year 1, it produced 24,500 units, and in year 2, 43,500 units. Assuming the units-of-production method, calculate the first 2 years’ depreciation. 5. CNBC reported that one in five consumers who purchase bitcoin do so using their credit card. Melissa Gamez purchased a used RV with 20,000 miles for $47,900. Originally the RV sold for $75,000 with a residual value of $21,000. After subtracting the residual value, depreciation allowance per mile was $0.96. How much was Melissa’s purchase price over or below the book value? Note: Input the amount as positive value. 6. Volkswagen car sales hit record high sales of $6.27 million. If one of Volkswagen’s assembly lines purchased a new quality control computer verifying VIN numbers for $6,636 with a 4-year life and residual value of $1,120, what is the depreciation expense in year 2 for the QC computer? Use the straight-line method. 7. CNN reported that higher-income shoppers are the biggest bargain shoppers searching Amazon, clicking on their mobile devices and even querying Alexa looking for the best deals. If Rebecca Johnson purchased a state-of-the-art Biologique Recherche facial machine for her home business for $117,000, with a useful life of 4 years and a residual value of $39,500. What would be the book value of the machine after the first year using the straight-line depreciation method?
- Shearer’s Foods, part of the $374 billion global snack food industry, employs 3,300 people in Brewster, Ohio. If Shearer’s purchased a packaging unit for $193,160 with a life expectancy of 696,000 units and a residual value of $47,000, what is the
depreciation expense for year 1 if 76,000 units were produced?
2. Lena Horn bought a Toyota Tundra on January 1 for $30,800 with an estimated life of 6 years. The residual value of the truck is $4,400. Assume a straight-line method of depreciation.
- What will be the book value of the truck at the end of year 4?
- If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year?
3. Jim Company bought a machine for $43,200 with an estimated life of 5 years. The residual value of the machine is $7,200. Assume straight-line depreciation.
- Calculate the annual depreciation.
- Calculate the book value at the end of year 3.
4. Jim Company bought a machine for $54,260 with an estimated life of 5 years. The residual value of the machine is $7,100. This machine is expected to produce 131,000 units. In year 1, it produced 24,500 units, and in year 2, 43,500 units. Assuming the units-of-production method, calculate the first 2 years’ depreciation.
5. CNBC reported that one in five consumers who purchase bitcoin do so using their credit card. Melissa Gamez purchased a used RV with 20,000 miles for $47,900. Originally the RV sold for $75,000 with a residual value of $21,000. After subtracting the residual value, depreciation allowance per mile was $0.96.
How much was Melissa’s purchase price over or below the book value?
Note: Input the amount as positive value.
6. Volkswagen car sales hit record high sales of $6.27 million. If one of Volkswagen’s assembly lines purchased a new quality control computer verifying VIN numbers for $6,636 with a 4-year life and residual value of $1,120, what is the depreciation expense in year 2 for the QC computer? Use the straight-line method.
7. CNN reported that higher-income shoppers are the biggest bargain shoppers searching Amazon, clicking on their mobile devices and even querying Alexa looking for the best deals. If Rebecca Johnson purchased a state-of-the-art Biologique Recherche facial machine for her home business for $117,000, with a useful life of 4 years and a residual value of $39,500.
What would be the book value of the machine after the first year using the straight-line depreciation method?
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