Question

In: Finance

A machine was purchased of $50000 and placed in service. It has an estimated market value...

A machine was purchased of $50000 and placed in service. It has an estimated market value of $10000 at the end of its useful life of 15 years. Compute the depreciation amount in the fourth year and the Book value at the end of six years by using (a) straight line method (b) Declining Balance method.

Solutions

Expert Solution


Related Solutions

Machine A was purchased last year for $10,000 and had an estimated market value of $1,100...
Machine A was purchased last year for $10,000 and had an estimated market value of $1,100 at the end of its 6-year life. Annual operating costs are $1,050. The machine will perform satisfactorily for the next five years. A salesman for another company is offering Machine B for $51,000 with an market value of $5,100 after 5 years. Annual operating costs will be $650. Machine A could be sold now for $8,000, and MARR is 13% per year. Using the...
Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year...
Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year 1 at a cost of $100,000. The machine’s useful life is estimated at 10 years, or 500,000 units of product, with a $5,000 salvage value. Prepare the journal entry to record the acquisition of the manufacturing machine. Account DR CR b. Determine the depreciation expense on the machine at the end of year 1 year under the straight-line method of depreciation. Also, record the...
On April 1 of the current year, a company purchased and placed in service a machine...
On April 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 12,000 units were produced. Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses: 1.The straight-line method of depreciation 2.The units-of-production method of...
2. On January 1, 2015, SAS Corp. purchased and placed in service a machine. The following...
2. On January 1, 2015, SAS Corp. purchased and placed in service a machine. The following information is available regarding the machine, show all calculations: (20 points) Acquisition cost ...................................................... $130,000 Estimated salvage value .......................................... $15,000 Estimated useful life ............................................... 5 years a. Using straight line depreciation, make the necessary adjusting journal entry at December 31, 2015. b. What would be the balance of the accumulated depreciation account after the 4th year adjusting entry? c. How would the machine and...
On September 30, 2021, Bricker Enterprises purchased a machine for $218,000. The estimated service life is...
On September 30, 2021, Bricker Enterprises purchased a machine for $218,000. The estimated service life is 10 years with a $30,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation for 2022, using the double-declining-balance method, would be:
On January 1, 2015, a machine was purchased for $90,900. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $90,900. The machine has an estimated salvage value of $6,060 and an estimated useful life of 5 years. The machine can operate for 101,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 20,200 hrs; 2016, 25,250 hrs; 2017, 15,150 hrs; 2018, 30,300 hrs; and 2019, 10,100 hrs. Assume a fiscal year-end of September 30. Compute the annual...
On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage value of $10,400 and an estimated useful life of 5 years. The machine can operate for 119,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 23,800 hrs; 2019, 29,750 hrs; 2020, 17,850 hrs; 2021, 35,700 hrs; and 2022, 11,900 hrs. (a) Compute the annual depreciation charges over the machine’s life...
On January 1, 2015, a machine was purchased for $107,100. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $107,100. The machine has an estimated salvage value of $7,140 and an estimated useful life of 5 years. The machine can operate for 119,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 23,800 hrs; 2016, 29,750 hrs; 2017, 17,850 hrs; 2018, 35,700 hrs; and 2019, 11,900 hrs. Assume a fiscal year-end of September 30. Compute the annual...
On January 1, 2018, a machine was purchased for $122,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $122,500. The machine has an estimated salvage value of $7,300 and an estimated useful life of 5 years. The machine can operate for 120,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 24,000 hrs; 2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022, 12,000 hrs. Compute the annual depreciation charges over the machine’s life assuming...
On January 1, 2018, a machine was purchased for $100,000. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $100,000. The machine has an estimated salvage value of $6,400 and an estimated useful life of 5 years. The machine can operate for 104,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 20,800 hrs; 2019, 26,000 hrs; 2020, 15,600 hrs; 2021, 31,200 hrs; and 2022, 10,400 hrs. Compute the annual depreciation charges over the machine’s life assuming...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT