the breakfast company purchases equipmwnt for 168,000. management estimstes that the equipment will have a useful...

the breakfast company purchases equipmwnt for 168,000. management estimstes that the equipment will have a useful life of seven years and no savage value. calculate depreciation expense and book value for the equipment of the first quater (in year one) using straight line method of depreciation.

depreciation expense

book value

Expert Solution

Answer :

Depreciation = Purchase Price / Useful life

= 168000 / 7

= 24000

Book Value at end of year 1 = 168000 - 24000

= 144000

jeff jeffy answered 2 years ago

The management of Osborn Corporation is investigating an investment in equipment that would have a useful...

The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 6 years. The company uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is ?$406,214. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.) Click here to view Exhibit 13B-1 and...

A company purchases a used item of equipment for $35,000. Its remaining useful life is estimated...

A company purchases a used item of equipment for $35,000. Its remaining useful life is estimated to be 6 years, and salvage is estimated to be $5000 at the end of its useful life. Prepare a table that shows its depreciation expense, accumulated depreciation, and net book value for each year of its estimated useful life, one using the straight-line method, and one using double-declining balance. Straight-line Cost of $35,000 – Salvage 0f $5,000 = $30,000 divided by 6 years...

A firm purchases equipment for $19,000,000. The equipment has a useful life of 11 years and...

A firm purchases equipment for $19,000,000. The equipment has a useful life of 11 years and a salvage value of $3,454,545 at the end of the project's life of 11 years. The tax rate is 38%. What is the equipment's after-tax salvage value? $1,312,727 $4,110,909 $2,141,818 $0

A company purchased equipment for $110,000 that is expected to have a useful life of 5...

A company purchased equipment for $110,000 that is expected to have a useful life of 5 years and a salvage value of $10,000. If double declining balance depreciation is used, what is the accumulated depreciation at the end of Year 2? $74,000 $60,000 $70,400

A company purchased equipment for $100,000 that is expected to have a useful life of 10...

A company purchased equipment for $100,000 that is expected to have a useful life of 10 years and no salvage value. The company sold the equipment at the end of the fourth year of its useful life, at which point it had fair market value of $65,000. If the asset was sold for $55,000 and was being depreciated using the straight line method as was reported at book value, what amount of gain or loss would be reported at the...

A company purchased equipment for $400,000 which was estimated to have a useful life of 14...

A company purchased equipment for $400,000 which was estimated to have a useful life of 14 years with a salvage or residual value of $22,000 at the end of that time. Depreciation has been recorded for 2 years on a straight-line basis. In 2020 (year 3), it is determined that the total estimated life should be 17 years with a residual or salvage value of $16,000 at the end of that time. What is the net book value a the...

On January 1, 2014, Pronghorn Company purchased a building and equipment that have the following useful...

On January 1, 2014, Pronghorn Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $46,800 salvage value, $762,400 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $101,800 cost The building has been depreciated under the double-declining-balance method through 2017. In 2018, the company decided to switch to the straight-line method of depreciation. Pronghorn also decided to change the total useful life of the equipment to 9 years,...

A company buys a piece of equipment for $62,000. The equipment has a useful life of...

A company buys a piece of equipment for $62,000. The equipment has a useful life of five years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment’s useful life? (Do not round intermediate calculations) $12,400. $24,800. $15,500. $31,000. An asset is purchased on January 1 for $47,200. It is expected to have a useful life of four years after which...

This exercise is a continuation of BE 9–11. During 2022, purchases at cost and retail were $168,000 and $301,000

This exercise is a continuation of BE 9–11. During 2022, purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2022 was 1.06. Estimate ending inventory in 2022 using the dollar-value LIFO retail method and the information provided.

On January 1, 2019, Happy Company purchased equipment for $114,000. The equipment was assigned a useful...

On January 1, 2019, Happy Company purchased equipment for $114,000. The equipment was assigned a useful life of 15 years and a $6,000 residual value. Happy Company will use the straight-line method to depreciate the equipment. On January 1, 2023, Happy Company revised the life of the equipment from 15 to 20 years. On January 1, 2026, Happy Company revised the life of the equipment from 20 to 12 years. On January 1, 2028, Happy Company spent $58,000 to overhaul...

Question