Question

Revision of Depreciation Equipment with a cost of $379,700 has an estimated residual value of $40,700, has an estimated useful life of 15 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 5 full years of use. $ c. Assuming that at the start of the year 6 the remaining life is estimated to be 14 years and the residual value is estimated to be $39,900, determine the depreciation expense for each of the remaining 14 years. $

Answer #1

a. Annual depreciation: $22600

Depreciable value = Cost - Residual value = $379700 - $40700 = $339000

Annual depreciation = Depreciable value/Estimated useful life = $339000/15 = $22600

b. Book value after 5 full years of use: $266700

Depreciation for 5 years = $22600 x 5 = $113000

Book value after 5 years = $379700 - $113000 = $266700

c. Depreciation expense for each of the remaining 14 years: $16200

Revised remaining depreciable cost = $266700 - $39900 = $226800

Revised remining useful life = 14 years

Depreciation expense = $226800/14 = $16200

Note: The change in the residual value and estimated useful life are changes in accounting estimates and hence are accounted for prospectively.

Revision of Depreciation Equipment with a cost of $492,800 has
an estimated residual value of $44,800, has an estimated useful
life of 32 years, and is depreciated by the straight-line method.
a. Determine the amount of the annual depreciation. $fill in the
blank 1 b. Determine the book value after 18 full years of use.
$fill in the blank 2 c. Assuming that at the start of the year 19
the remaining life is estimated to be 19 years and...

Revision of Depreciation A building with a cost of $495,000 has
an estimated residual value of $99,000, has an estimated useful
life of 18 years, and is depreciated by the straight-line
method.
a. What is the amount of the annual depreciation?
b. What is the book value at the end of the tenth year of
use?
c. If at the start of the eleventh year it is estimated that the
remaining life is 10 years and that the residual value...

Equipment with a cost of $649,900 has an estimated residual
value of $74,800, has an estimated useful life of 27 years, and is
depreciated by the straight-line method.
a. Determine the amount of the annual
depreciation.
$
b. Determine the book value after 12 full years
of use.
$
c. Assuming that at the start of the year 13
the remaining life is estimated to be 21 years and the residual
value is estimated to be $73,000, determine the depreciation...

Equipment with a cost of $423,100 has an estimated residual
value of $48,700, has an estimated useful life of 32 years, and is
depreciated by the straight-line method.
a. Determine the amount of the annual
depreciation.
$
b. Determine the book value after 19 full years
of use.
$
c. Assuming that at the start of the year 20
the remaining life is estimated to be 20 years and the residual
value is estimated to be $40,800, determine the depreciation...

Equipment with a cost of $80,989.00, an estimated residual value
of $6,709.00, and an estimated life of 13 years was depreciated by
the straight-line method for 6 years. Due to obsolescence, it was
determined that the remaining useful life should be shortened by 3
years and the residual value changed to zero. The depreciation
expense for the current and future years is
Select the correct answer.
$11,676.48
$5,189.55
$3,592.76
$34,283.08

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

An asset was purchased
for $57,000 and originally estimated to have a useful life of 10
years with a residual value of $4,100. After two years of
straight-line depreciation, it was determined that the remaining
useful life of the asset was only 2 years with a residual value of
$1,640.
a.
Determine the amount of the annual depreciation for the first two
years.
$
b.
Determine the book value at the end of Year 2.
$
c.
Determine the depreciation...

An asset that cost $72,000 has a current book value of $42,000.
A revision of the useful life of the asset estimates the asset has
a remaining useful life of four years and will have a salvage value
of $12,600. Using the straight-line method, calculate the revised
annual depreciation.
__________________________________________________________
1
2
3
4
5
6
7
8
9
10
Working Paper (Optional)

Partial-Year Depreciation
Equipment acquired at a cost of $90,000 has an estimated
residual value of $5,000 and an estimated useful life of 10 years.
It was placed into service on April 1 of the current fiscal year,
which ends on December 31.
If necessary, round your answers to the nearest cent.
a. Determine the depreciation for the current
fiscal year and for the following fiscal year by the straight-line
method.
Depreciation
Year 1
$
Year 2
$
b. Determine the...

Partial-Year Depreciation
Equipment acquired at a cost of $97,000 has an estimated
residual value of $6,000 and an estimated useful life of 10 years.
It was placed into service on October 1 of the current fiscal year,
which ends on December 31.
If necessary, round your answers to the nearest cent.
a. Determine the depreciation for the current
fiscal year and for the following fiscal year by the straight-line
method.
Depreciation
Year 1
Year 2
b. Determine the depreciation for...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 25 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago