On February 28, 20X1, your company purchases a machine for $150,000 with an estimated useful life...

On February 28, 20X1, your company purchases a machine for $150,000 with an estimated useful life of last 10 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. What is 20X1 depreciation expense? $22,727 $27,273 $25,455 $21,212

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ekkarill92 answered 1 year ago

Your Company purchased a machine with an estimated useful life of 8 years. The machine will...

Your Company purchased a machine with an estimated useful life of 8 years. The machine will generate cash inflows of $96,000 each year. The salvage value at the end of the project is $80,000. Your Company's discount rate is 6%. The net present value of the investment is ($7,500). What is the purchase price of the machine?

On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life...

On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life of five years or 36,000 drilling operations and estimated salvage value of $1,000. REQUIRED: Encircle the one correct answer for each of the following: Show all supporting calculations or no credit. Using straight-line depreciation, 20x1 depreciation expense is: a. $2,000 b. $7,200 c. $1,800 d. $900 e. None of these. Using units-of-production depreciation and that 8,000 drilling operations were made during 20x1, depreciation expense...

Third Eye Blind purchases machine for manufacturing clothing for $100,000 with an original estimated useful life...

Third Eye Blind purchases machine for manufacturing clothing for $100,000 with an original estimated useful life of 5 years and residual value of $20,000. 7. After 2 years, demand for the clothing produced by the machine has declined and they estimate that the machine will yield net cash flows of 23,000 each of the next three years (assume cash flows occur at the end of the year). Assume a discount rate of 10% and straight-line depreciation. What impairment does Third...

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...

An asset was purchased on January 1, 2020 for $150,000. The estimated useful life is 5...

An asset was purchased on January 1, 2020 for $150,000. The estimated useful life is 5 years and 31,250 units. With the residual value being $25,000 prepare a schedule of depreciation for each of the Straight-line method, Double Declining Method and the Units of Production method. The units to be produced are as follows: Year 1 5,000 units, Year 2 4,000 units, Year 3 6,000 units, Year 4 10,000 units and Year 5 12,000 units. What is the depreciation expense...

A machine was purchased on January 1 for $100,000. The machine has an estimated useful life...

A machine was purchased on January 1 for $100,000. The machine has an estimated useful life of 4 years with a salvage value of $10,000. Under the straight-line method, accumulated depreciation at the end of year 2 is:

Torge Company bought a machine for $62,000 cash. The estimated useful life was five years and...

Torge Company bought a machine for $62,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 174,000. Units actually produced were 46,400 in year 1 and 52,200 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.) 2-a. Which method would result in the lowest net income for year 1? A.Units-of-production B.Straight-line C.Double-declining-balance 2-b. Which...

A new machine costs $120,000, has an estimated useful life of five years and an estimated...

A new machine costs $120,000, has an estimated useful life of five years and an estimated salvage value of $15,000 at the end of that time. It is expected that the machine can produce 210,000 widgets during its useful life. The New Times Company purchases this machine on January 1, 2017, and uses it for exactly three years. During these years the annual production of widgets has been 80,000, 50,000, and 30,000 units, respectively. On January 1, 2020, the machine...

On January 1, 2017, company purchased a molding machine at 67.000 TL. The estimated useful life...

On January 1, 2017, company purchased a molding machine at 67.000 TL. The estimated useful life of the machine is 4 years and the estimated salvage value is 2.000 TL. At the beginning of the 3rd year a major renovation is maintained on the machine. The cost of the renovation is 34.000 TL. Because of the renovation estimated useful life extended to 6 years in total and the salvage value increased to 2.500 TL. Assume the company uses double declining method prepare...

Benson Company bought a machine costing $120,000 on 1 April 2015. Management estimated the useful life...

Benson Company bought a machine costing $120,000 on 1 April 2015. Management estimated the useful life to be 10 years and the residual value to be $20,000. On 1 January 2018, management revised the useful life and residual value of the machine. The remaining useful life was revised to 5 years while the residual value was revised to $10,000. The company’s financial year end is 31 December. Compute the depreciation expense, accumulated depreciation and net book value of the machine...

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