Question

If the equipment had an original useful life of 7 years, and is depreciated straight line,...

If the equipment had an original useful life of 7 years, and is depreciated straight line, when will new equipment probably need to be purchased?

a. now

b. 2 years

c. 5 years

d. cannot be estimated

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:
d. cannot be estimated

Explanation:
The useful life of an asset depends on various factors and can be estimated in many different ways. This may include the age of the asset when it was purchased by the organisation, how frequently the asset is being utilized in the organisation and changes in the economy with regard to technology. Mere estimation of the fact that an equipment will have a useful life of 7 years doesn’t mean that a new equipment will be purchased only after 7 years. Due to the dynamic nature of business environment there might be a need to upgrade the equipment to a new one in the 1st year of its useful life itself. Therefore, when a new equipment should be probably purchased cannot be estimated.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on...
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2021, when the equipment had been in use for 10 years, the company paid $54000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years. What will be...
Lexis Company purchased equipment on January 1, 2012 for $35,500. The estimated useful life of the...
Lexis Company purchased equipment on January 1, 2012 for $35,500. The estimated useful life of the equipment was 7 years and the estimated residual value was $4,000. After using the straight-line method of depreciation for 3 years, the estimated useful life was revised to 9 years on January 1, 2015. How much is depreciation expense for 2015? A) $2,444 B) $3,000 C) $2,000 D) $3,667
Hoover Corporation purchased equipment on January 1,2019,for$610,000.In 2019 and 2020,Hoover depreciated the asset on a straight-line...
Hoover Corporation purchased equipment on January 1,2019,for$610,000.In 2019 and 2020,Hoover depreciated the asset on a straight-line basis with an estimated useful life of eight years and a$10,000 residual value.In 2021,due to changes in technology,Hoover revised the useful life to a total of four years with no residual value.What depreciation would Hoover record for the year 2021 on this equipment?(Round your answer to the nearest dollar amount.)
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost...
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $51,000 and its estimated residual value is $2,000. After 3 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:
When originally purchased, a vehicle costing $25,020 had an estimated useful life of 8 years and...
When originally purchased, a vehicle costing $25,020 had an estimated useful life of 8 years and an estimated salvage value of $2,700. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
When originally purchased, a vehicle costing $24,660 had an estimated useful life of 8 years and...
When originally purchased, a vehicle costing $24,660 had an estimated useful life of 8 years and an estimated salvage value of $2,500. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
When originally purchased, a vehicle had an estimated useful life of 10 years. The vehicle cost...
When originally purchased, a vehicle had an estimated useful life of 10 years. The vehicle cost $61,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset’s total estimated useful life was revised from 10 years to 7 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is: Multiple Choice $1,725 $8,011 $8,286 $10,150
When originally purchased, a vehicle had an estimated useful life of 12 years. The vehicle cost...
When originally purchased, a vehicle had an estimated useful life of 12 years. The vehicle cost $39,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset’s total estimated useful life was revised from 12 years to 8 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:
Only " Using Straight line method of depreciation " Each sale entry is a four line...
Only " Using Straight line method of depreciation " Each sale entry is a four line entry. E10.10 (LO 3) Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2017. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years. a. Sold for $31,000 on January 1, 2020. b. Sold for $31,000 on May 1, 2020. c. Sold for $11,000 on January 1, 2020....
Equipment with a cost of $61,425, an estimated residual value of $2,925, and an estimated life...
Equipment with a cost of $61,425, an estimated residual value of $2,925, and an estimated life of 15 years was depreciated by the straight-line method for 7 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$11,375 b.$2,844 c.$27,300 d.$2,275
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT