Question
In: Accounting
A machine that cost $96,000 on January 1, 2015 was depreciated by Ava Company using the double declining method.
A machine that cost $96,000 on January 1, 2015 was depreciated by Ava Company using the double declining method. The machine had a $8,600 residual value and a useful life of 5 Years. On January 1. 2017, the company switched to the straight line method. What is the depreciation expense for the year ended December 31, 2017 $____
Solutions
Expert Solution
| Step-1:Calculation of depreciation under double declining balance | ||||||
| Straight Line Depreciation rate | = | 1/5 | = | 20% | ||
| Double declining rate | = | 2*20% | = | 40% | ||
| Year | Beginning Book Value | Double Declining Depreciation rate | Depreciation Expense | Ending Book Value | ||
| January 1, 2015 | $ 96,000 | |||||
| January 1, 2016 | $ 96,000 | 40% | $ 38,400 | $ 57,600 | ||
| January 1, 2017 | $ 57,600 | 40% | $ 23,040 | $ 34,560 | ||
| Step-2:Calculation of depreciation under straight line for the year ended on December 31, 2017 | ||||||
| Depreciation Expense under straight Line Method | = | (Cost - Salvage Value)/Useful Life | ||||
| = | (34560-8600)/3 | |||||
| = | $ 8,653.33 | |||||
| Thus, | ||||||
| Depreciation expense for the year ended December 31, 2017 | $ 8,653.33 | |||||
ekkarill92 answered 2 years agoRelated Solutions
6 (A) A machine that cost $96,000 on January 1, 2015 was depreciated by Ava Company...
6
(A) A machine that cost $96,000 on January 1, 2015 was
depreciated by Ava Company using the double declining method. The
machine had a $8,600 residual value and a useful life of 5 Years.
On January 1. 2017, the company switched to the straight line
method.
What is the book value of the machine as of January 1,
2017?________
(B)
A machine that cost $96,000 on January 1, 2015 was depreciated by
Ava Company using the straight line method....
A machine that cost $32,000 on January 1, 2015 was depreciated by Ava Company using the...
A machine that cost $32,000 on January 1, 2015 was depreciated
by Ava Company using the double declining method. The machine had a
$3,700 residual value and a useful life of 5 Years. On January 1.
2017, the company switched to the straight line method.
What is the book value of the machine as of January 1,
2017?________
Please show all steps and how you got each
number
A machine that cost $46,000 on January 1, 2015 was depreciated by Ava Company using the...
A machine that cost $46,000 on January 1, 2015 was depreciated
by Ava Company using the double declining method. The machine had a
$2,200 residual value and a useful life of 10 Years. On January 1.
2017, the company switched to the straight line method.
What is the depreciation expense for the year ended December 31,
2017?
A machine that cost $68,616 on January 1, 2014 was depreciated by Ava Company using the straight line method.
A machine that cost $68,616 on January 1, 2014 was depreciated by Ava Company using the straight line method. The machine had no residual value and a useful life of 8 Years. On January 1. 2017, the company switched to the sum of years’-digits method.
What is the depreciation expense for the year ended December 31, 2017 $____
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining...
The truck was purchased on January 1, 2018 for $100,000 and is
depreciated using the double-declining balance method. The truck
has a salvage value of $10,000 and an estimated useful life of five
years. On December 31, sold truck for $30,000 cash. Hint: Two years
(2018 and 2019) of depreciation expense have been recorded and the
total depreciation for the two-year period is in accumulated
depreciation immediately before the sale of the truck.
Please let me know what the debit...
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining...
The truck was purchased on January 1, 2018 for $100,000 and is
depreciated using the double-declining balance method. The truck
has a salvage value of $10,000 and an estimated useful life of five
years. On December 31, sold truck for $30,000 cash. Hint: Two years
(2018 and 2019) of depreciation expense have been recorded and the
total depreciation for the two-year period is in accumulated
depreciation immediately before the sale of the truck.
Please let me know what the debit...
A business machine purchased April 1, 2015, for $108,000 was fully depreciated in 2015 using §...
A business machine purchased April 1, 2015, for $108,000 was
fully depreciated in 2015 using § 179 immediate expensing. On
August 15, 2017, the machine was sold for $77,000. What is the
amount and nature of the gain or loss from disposition of the
machine?
Swifty Company purchased equipment for $1008000 on January 1, 2020, and will use the double-declining-balance method...
Swifty Company purchased equipment for $1008000 on January 1,
2020, and will use the double-declining-balance method of
depreciation. It is estimated that the equipment will have a 3-year
life and a $43000 salvage value at the end of its useful life. The
amount of depreciation expense recognized in the year 2022 will
be
Crane Company purchased equipment for $100000 on January 1, 2020 and will use the double-declining-balance method...
Crane Company purchased equipment for $100000 on January 1, 2020
and will use the double-declining-balance method of depreciation.
It is estimated that the equipment will have a 5-year life and a
$18000 salvage value at the end of its useful life. The amount of
depreciation expense recognized in the year 2022 will be
$13536.
$19680.
$14400.
$24000.
On October 1, 2022, Blossom Company places a new asset into
service. The cost of the asset is $120000 with an estimated 4-year...
A machine was acquired on January 1, 2015, at a cost of $80,000. The machine was...
A machine was acquired on January 1, 2015, at a cost of $80,000.
The machine was originally estimated to have a residual value of
$5,000 and an estimated life of 5 years. The machine is expected to
produce a total of 100,000 components during its life, as follows:
15,000 in 2015, 20,000 in 2016, 20,000 in 2017, 30,000 in 2018, and
15,000 in 2019.
Instructions
(a) Calculate the amount of depreciation to be charged
each year, using each of the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
ADVERTISEMENT