Question

Compute the depreciation each year of a machine that costs $52,000 to purchase, and $4,000 to install with an 8-year life. Use the DDB method (multiplier = 2) switching to straight line depreciation when appropriate. Assume a salvage value of $0.

D_{1} =_____

D_{2} =_____

D_{3} =_____

D_{4} =_____

D_{5} =_____

D_{6} =_____

D_{7} =_____

D_{8} =_____

Answer #1

Compute the depreciation and book value each year of a machine
that costs $38,000 to purchase, $4,000 to install and $4,000 for
its freight with a 7-year life. Use the DDB method (multiplier 2)
switching to straight line depreciation if appropriate. Salvage
value is $3,000.
Depreciation
Amount
Book Value
D1 =
_______________
B1 = _________________
D2 =
_______________
B2 = _________________
D3 =
_______________
B3 = _________________
D4 =
_______________
B4 = _________________
D5 = ...

Compute the depreciation each year of a machine that costs
$66,000 to purchase, and $4,000 to install with an 8-year life. Use
the DDB method (multiplier = 2) switching to straight line
depreciation when appropriate. Assume a salvage value of $0.

Compute the depreciation schedule using straight line method for
a copy machine that costs $51,186 and has SV of $1,783 at the end
of a 12-year depreciable life.

Synlex Inc. is considering the purchase of a new machine for
$600,000. It would cost $4,000 to
install the machine. It would necessitate an increase of net
working capital 120,000 at the initial time. It
will result in an increase of sales revenue by
$210,000 and an increase of maintenance cost by
$40,000 per year. The machine has
an expected life of 10 years, after which it will
have salvage value of $50,000. Assume
straight-line depreciation and the machine is...

Synlex Inc. is considering the purchase of a new machine for
$600,000. It would cost $4,000 to install the machine. It would
necessitate an increase of net working capital 120,000 at the
initial time. It will result in an increase of sales revenue by
$210,000 and an increase of maintenance cost by $40,000 per year.
The machine has an expected life of 10 years, after which it will
have salvage value of $50,000. Assume straight-line depreciation
and the machine is...

Problem 8-2A Depreciation methods LO P1
A machine costing $215,200 with a fouryear life and an
estimated $20,000 salvage value is installed in Luther Company’s
factory on January 1. The factory manager estimates the machine
will produce 488,000 units of product during its life. It actually
produces the following units: 121,700 in 1st year, 123,800 in 2nd
year, 120,900 in 3rd year, 131,600 in 4th year. The total number of
units produced by the end of year 4 exceeds the...

A digitally controlled plane for manufacturing furniture
is purchased on April 1 by La-Z-boy for $66,000. It is expected to
last 12 years and have a salvage value of $5,000.
Using the information above answer questions A-C
below:
A. Using the Declining Balance method (DB), what is the
depreciation write-off for year 4 (d4)?
A.
$10,300
B. $
8,300
C.
$ 6,700
D.
$ 5,400
B. Using the Double Declining Balance method (DDB), what
is the book value for year...

Beryl's Iced Tea currently rents a bottling machine for $
52,000 per year, including all maintenance expenses. It is
considering purchasing a machine instead and is comparing two
options: a. Purchase the machine it is currently renting for $
155,000. This machine will require $ 22,000 per year in ongoing
maintenance expenses. b. Purchase a new, more advanced machine for
$ 250,000. This machine will require $ 16,000 per year in ongoing
maintenance expenses and will lower bottling costs by...

Carmel Corporation is considering the purchase of a machine
costing $37,000 with a 5-year useful life and no salvage value.
Carmel uses straight-line depreciation and assumes that the annual
cash inflow from the machine will be received uniformly throughout
each year. In calculating the accounting rate of return, what is
Carmel's average investment?
Multiple Choice
$18,500.
$22,200.
$7,400.
$37,000.
$8,880.
The following relates to a proposed equipment
purchase:
Cost
$
153,000
Salvage value
$
3,000
Estimated useful life
4
years...

Apex Fitness Club uses straight-line depreciation for a machine
costing $23,860, with an estimated four-year life and a $2,400
salvage value. At the beginning of the third year, Apex determines
that the machine has three more years of remaining useful life,
after which it will have an estimated $2,000 salvage value.
Required:
1. Compute the machine’s book value at the end of its second
year.
2. Compute the amount of depreciation for each of the final three
years given...

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