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Question 4 Suppose a company purchased land and a building for $17027184 cash. The appraised value...

Question 4

Suppose a company purchased land and a building for $17027184 cash. The appraised value of the building was $13489468, and the land was appraised at $8238190.

What dollar amount of the purchase price will be allocated to the Building account?

*Note: for calculations, please do not round the percentage.

Question 5

At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik-E-Mart with a cost of $201187. The new machine has an estimated life of 11 years or 104093 units (squishee drinks). The estimated salvage value is $20599. During 2023, 13062 units (drinks) were made with the new machine and during 2024, 14178 units (drinks) were made.

Calculate the accumulated depreciation on December 31, 2023, using units-of-production depreciation.

Question 6

At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik-E-Mart with a cost of $206135. The new machine has an estimated life of 11 years or 102352 units (squishee drinks). The estimated salvage value is $19107. During 2023, 13309 units (drinks) were made with the new machine and during 2024, 14202 units (drinks) were made.

What is net book value at the end of 2025, using straight-line depreciation?

Question 7

The Galactic Federation purchased a new X-wing at the beginning of 2024 for $286895. The Federation decided to depreciate the X-wing over a 6-year period using the double-declining-balance method. The Federation estimated the X-wing’s salvage value at $50,000.

What is the depreciation expense for December 31, 2025?

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Homework Answers

Answer #1

Answer of question no 5

Depreciation for the year ended December 31, 2023 will be: Depreciable value of machine / Estimated number of units to be produce * number of units produced during the year

Depreciable value = Cost of machine - Salvage value

Depreciable value = $201187- $20599 = $180588

Depreciation = $180588 / 104093* 14178 = $24597

here in question machine purchased at the begining of 2023 only. so accumulated depreciation as on december 31, 2023 will be the depreciation of same year.

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