UWorld ROGER Multiple Choice O $9,167 X Company had been depreciating a machine with an original cost of $125,000 and a salvage value of $15,000 over its estimated useful life of 10 years using straight line depreciation. At the beginning of the seventh year, X Company determined that the machine will actually remain in use for a total of 12 years and will have a salvage value of $5,000 How much depreciation will X Company recognize in the seventh year? $7,333 $9,000 CPA Review $10,000 Saved Help Save & Exit

UWorld ROGER Multiple Choice O $9,167 X Company had been depreciating a machine with an original cost of $125,000 and a salvage value of $15,000 over its estimated useful life of 10 years using straight line depreciation. At the beginning of the seventh year, X Company determined that the machine will actually remain in use for a total of 12 years and will have a salvage value of $5,000 How much depreciation will X Company recognize in the seventh year? $7,333 $9,000 CPA Review $10,000 Saved Help Save & Exit

Name: UWorld ROGERmos6 as BARRADMultiple ChoiceOOX Company had been depreci
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Description: UWorld ROGERmos6 as BARRADMultiple ChoiceOOX Company had been depreciating a machine with an original cost of $125,000 and a salvage value of $15,000 over its estimated useful life of 10 years using straight linedepreciation. At the beginning of the

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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QUESTION 7 Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of eight years has been depreciated using the straight-line method for two years. Assuming a revised estimated total life of five years and no change in the salvage value, the depreciation expense for year three would be $14,000. $11,200. $ 8,400. $18,667.
Unit VIII question 12
Exercise 10-13 (Algo) Revising depreciation LO C2 Apex Fitness Club uses straight-line depreciation for a machine costing $21,050, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
Problem 4 – Depreciation and Disposal On Jan. 1, 2020, Forsyth Co. acquired a unit of equipment for a total cost of P5,000,000. The entity estimates that during its 10-year useful life, the equipment will be able to produce 500,000 units of its product for 40,000 working hours, and will be sold for scrap. The usage of the equipment from 2020 to 2023 is as follows: Units Produced Hours Used 2020 32,000 2,500 2021 40,000 3,250 2022 45,000 4,200 2023 60,000 4,500 On Jan. 1, 2024, the equipment was sold for P3,250,000. 1. Using the units of output depreciation method: Determine the 2021 depreciation expense Determine the carrying value on December 31, 2022 Determine the gain or loss on disposal on January 1, 2024 а. b. с. 2. Using the working hours depreciation method: Determine the 2021 depreciation expense b. Determine the carrying value on December 31, 2022 Determine the gain or loss on disposal on January 1, 2024 а. с.
Problem 4 The following information pertains to Bosh Inc.'s depreciable assets: • Machine Y cost P525,000 and was acquired on January 1, 2016. On the acquisition date, the expected useful life was 12 years with no residual value. The straight line method was used. On January 1, 2020, it was estimated that the remaining life of the asset would be 4 years and that there would be a P25,000 residual value. • A building was purchased on January 1, 2017 for P3,000,000. The building was expected to have a useful life of 20 years with no residual value. The straight line depreciation method was used. On January 1, 2020, a change was made to the sum-of-the-years'-digits method of depreciation. No change was made to the estimated useful life and residual value of the building. _3. What is the depreciation expense of Machine Y for 2020? _4. What is the depreciation expense of building for 2022?
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Knowledge Check 01 A company purchases a machine for $10,000. The estimated residual value is $4,000, and the estimated service life is 4 years or 10,000 units. The company uses the straight-line method of depreciation. The depreciable cost of the asset is: Multiple Choice O $1,000 $1,500 $6,000 $10,000
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QS 10-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
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