Use the following facts for questions 4-6. Rearden Co. has the plant assets shown below. Assume Rearden Co. depreciates in all years on the basis of the nearest full month. Machine A Machine B Building Original cost $640,000 $390,000 $2,000,000 Date purchased 7/1/13 10/1/12 1/1/05 Useful life 20 years 8 years 20 years Salvage value $40,000 $30,000 none Depreciation method Double-declining balance Sum-of-the years'-digits Straight-line Accum. Depr. Through 12/31/ 2014 $92,800 $165,000 $1,000,000

Use the following facts for questions 4-6. Rearden Co. has the plant assets shown below. Assume Rearden Co. depreciates in all years on the basis of the nearest full month. Machine A Machine B Building Original cost $640,000 $390,000 $2,000,000 Date purchased 7/1/13 10/1/12 1/1/05 Useful life 20 years 8 years 20 years Salvage value $40,000 $30,000 none Depreciation method Double-declining balance Sum-of-the years'-digits Straight-line Accum. Depr. Through 12/31/ 2014 $92,800 $165,000 $1,000,000

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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