Xerxes Corporation ('XC') manufactures proprietary micro chipsets for smart devices. It purchased an automated pick-place-solder machine for $895,000 on June 29, 20X0. Installation was completed by July 31, 20X0 at a cost of $5,000 and the equipment was placed into service on August 1, 20XO. The equipment vendor estimates the expected useful life of the equipment to be 10 years, after which its residual value will be approximately $90,000. XC's year-end is April 30. Management decided to use the double-declining balance method of depreciation and prorates depreciation to the nearest full month. The depreciation expense XC should record for their 20X2 fiscal year (rounded to the nearest $1,000) is: $153,000 O $144,000 $135,000 $122,000 $83,000

Xerxes Corporation ('XC') manufactures proprietary micro chipsets for smart devices. It purchased an automated pick-place-solder machine for $895,000 on June 29, 20X0. Installation was completed by July 31, 20X0 at a cost of $5,000 and the equipment was placed into service on August 1, 20XO. The equipment vendor estimates the expected useful life of the equipment to be 10 years, after which its residual value will be approximately $90,000. XC's year-end is April 30. Management decided to use the double-declining balance method of depreciation and prorates depreciation to the nearest full month. The depreciation expense XC should record for their 20X2 fiscal year (rounded to the nearest $1,000) is: $153,000 O $144,000 $135,000 $122,000 $83,000

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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