If an asset cost $48,000 and has a residual value of $8,000 and a useful life...

If an asset cost $48,000 and has a residual value of $8,000 and a useful life of eight years, the depreciation in the third year, using the double-declining balance method, would be (assume a full year of depreciation in the first year):

		a. $5,625
		b. $9,000
		c. $12,000
		d. $6,750

A building was purchased for $250,000 and has a useful life of 20 years, and a residual value of $50,000. After it has been used 4 years, its accumulated depreciation using the straight line method would be (assume a full year of depreciation in the first year):

		a. $40,000
		b. $50,000
		c. $10,000
		d. $12,500

Massachusetts Mining Company purchased a gravel pit for $2,800,000. It is estimated that 8 million tons of gravel can be extracted over the pit's useful life, with a residual value of $400,000. If 3 million tons are extracted and sold during the first year, how much depletion expense should be recorded?

		a. $1,050,000
		b. $1,800,000
		c. $1,000,000
		d. $900,000

An asset is purchased for $20,000. It has an estimated residual value of $5,000 and an estimated useful life of ten years. After three years of use, the estimated residual value is revised to $4,000. Assuming straight-line depreciation, depreciation expense in year four of use would be (round your answer to the nearest whole dollar):

		a. $2,286
		b. $1,643
		c. $2,100
		d. $1,150

Expert Solution

ekkarill92 answered 2 years ago

A plant asset with a cost of $270,000, estimated life of 5 years, and residual value...

A plant asset with a cost of $270,000, estimated life of 5 years, and residual value of $45,000, is depreciated by straight-line method. This asset is sold for $190,000 at the end of the 2nd year. a) Prepare the entry for depreciation for the year? b) Prepare the entry for the sales of the asset.

Question: An asset has a useful life of 3 years. cost of the asset is $2000....

Question: An asset has a useful life of 3 years. cost of the asset is $2000. Residual value is $500. the asset can be used for a total of 1500 hours. it is used for 650 hours in the first year of operations and for 600 hours in the second year. Depreciation expense for the three years will be as follows: Calculate annual depreciation for the first and second year of the operations using (1) straight-line method (2) Units of...

An asset cost $13,000; estimated residual value, $1,000, and estimated life: Estimated Life Actual usage In...

An asset cost $13,000; estimated residual value, $1,000, and estimated life: Estimated Life Actual usage In years 5 In running time (hours) 3,000 hrs. Year 1 = 700 hrs. Year 2 = 3200 hrs. In productive output (units) 10,000 units Year 1 = 2000 units Year 2 = 5000 units Straight Line Year Depreciation Expense Accumulated Depreciation Cost Net Book Value Yr. 1 13,000 Yr. 1 end Yr. 2 Service Hours Year Depreciation Expense Accumulated Depreciation Cost Net Book Value...

Asset purchased on Jan 1 109000, original useful life 10 yrs w/ residual value 12500. At...

Asset purchased on Jan 1 109000, original useful life 10 yrs w/ residual value 12500. At the end of the third yr it was determined that the remaining life was only 4 years w: residual cost of $3000. Calculate the 3rd year depreciation expense using the revised amounts and straight line method 20675 21675 22175 22675

A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful...

A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation. Required: 1. Calculate the machine's depreciable cost. 2. Calculate the machine's depreciation expense for each year. 3. Calculate the machine's accumulated depreciation and book value at the end of each year.

On June 30, a machine with a useful life of 10 years and a residual value...

On June 30, a machine with a useful life of 10 years and a residual value of $10,000 was purchased for $75,000. What is the depreciation expense for year 2 under straight line depreciation? A. 6,500 B. 13,000 Not sure if the question is looking for just the expense for year 2 which would be $6,500, or the accumulated depreciation expense of all the years up until year 2 which would then be $13,000.

A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years.

A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years.Determine (a ) the depreciable cost (b)the straight line rate (c) the annual straight line depreciation

Cost Salvage Value Useful Life Units of Production MACRS Class Life Asset #1 $ 1,400,000 $ ...

Cost Salvage Value Useful Life Units of Production MACRS Class Life Asset #1 $ 1,400,000 $ 100,500 5 2016 41,000 5 * Total units of 2017 48,000 output = 2018 26,000 160,000 On january 1st 2016, the company purchased the above asset. Then, calculate the annual depreciation for 2016, 2017, and 2018 assuming they were all purchased June 1st, 2016. Show all of your work.

Given an asset with initial cost of $20,000, useful life of 5 years, salvage value =...

Given an asset with initial cost of $20,000, useful life of 5 years, salvage value = 0, find the depreciation allowances and the book values using the a. Straight-Line Method b. MACRS

"Consider the following data on an asset Cost of the asset, I = $70,000 Useful life,...

"Consider the following data on an asset Cost of the asset, I = $70,000 Useful life, N = 7 years What is the book value at the end of the useful life if you depreciate according to the double-declining-balance (DDB) method?"

Question