Question

Martin Company purchases a machine at the beginning of the year at a cost of $60,000,...

Martin Company purchases a machine at the beginning of the year at a cost of $60,000, . The machine is depreciated using the straight line methodThe machine's useful is estimated to be 4 years with a $5,000 salvage valueThe book value of the machine at the end of year 4

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Depreciation as per Straight line Depreciation method is: Purchase price- salvage value / Life of the machine

Accordingly Depreciation is:$60000-$5000/4=$13750 per year.

Year Opening Book Value Depreciation Closing Book Value
1 60000 13750 46250
2 46250 13750 32500
3 32500 13750 18750
4 18750 13750 5000

As Calculated in the Table the Book Value of the machine at the end of the 4 year is equal to SALVAGE VALUE which is 5000. Further In straight Line Depreciation Method the asset is DEPRECIATED EQUALLY in the Life of the year after Deducting Salvage Value, So methamitacally also Salvage Value will be the Closing Book Value of at the end of 4 year.

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
Martin Company purchases a machine at the beginning of the year at a cost of $126,000....
Martin Company purchases a machine at the beginning of the year at a cost of $126,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $10,500 salvage value. The machine’s book value at the end of year 3 is:
Martin Company purchases a machine at the beginning of the year at a cost of $85,000....
Martin Company purchases a machine at the beginning of the year at a cost of $85,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $7,000 salvage value. The machine’s book value at the end of year 3 is: $42,500. $63,750. $74,375. $10,625. $9,719.
Mohr Company purchases a machine at the beginning of the year at a cost of $39,000....
Mohr Company purchases a machine at the beginning of the year at a cost of $39,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 5 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is
Mohr Company purchases a machine at the beginning of the year at a cost of $27,000....
Mohr Company purchases a machine at the beginning of the year at a cost of $27,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 8 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is:
Martin Company purchases a machine at the beginning of the year at a cost of $140,000....
Martin Company purchases a machine at the beginning of the year at a cost of $140,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $11,600 salvage value. The machine’s book value at the end of year 3 is: Multiple Choice a. $70,000. b. $105,000. c. $122,500. d. $17,500. e. $16,025.
14A. Martin Company purchases a machine at the beginning of the year at a cost of...
14A. Martin Company purchases a machine at the beginning of the year at a cost of $135,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $11,250 salvage value. Depreciation expense in year 4 is: 14B. On January 1 of Year 1, Congo Express Airways issued $4,400,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,994,000 and the market...
Mohr company purchases a machine at the beginning of the year at a cost of $47,000....
Mohr company purchases a machine at the beginning of the year at a cost of $47,000. the machine is depreciated using the double declining balance method. the machine's useful is life estimate by 5 years with 7,000 salvage value. depreciation expense in years 2 is
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year...
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product. Determine the machine’s second-year depreciation and year end book value under the straight-line method.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year...
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $86,800. The machine's useful life is estimated at 20 years, or 404,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 34,400 units of product. Determine the machine’s second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense / = Depreciation expense...
Oprian Company uses straight line depreciation for a machine costing $47,300. When it was purchased, the...
Oprian Company uses straight line depreciation for a machine costing $47,300. When it was purchased, the company estimated that it would have a useful life of 7 years and a salvage value of $5,000. At the start of the fourth year, the company has revised its estimates. The machine will last an additional 5 years and the salvage value will be only $4,000. Compute the machine's book value at the end of its third year and the amount of depreciation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT