Question

A photocopier was purchased 1-7-13 for $36,000, with a residual value of $4000, useful life of...

A photocopier was purchased 1-7-13 for $36,000, with a residual value of $4000, useful life of 4 years. Then 28/2/14 the photocopier was upgraded for $4000. Calculate the depreciation for this photocopier machine using straight line method.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Particulars

Amount ($)

Purchased value of the machine

   36,000.00

Add: Up gradation costs

     4,000.00

Value of the machine

   40,000.00

Less: Residual value

     4,000.00

Depreciable value

   36,000.00

Useful life of the machine

4 years

Annual depreciation under SLM (36000 /4)

     9,000.00

Note:
It has been assumed that the up gradation cost has enhanced the value of the machine which is in the nature of capital expenditure. Thus, the same has been added to the cost of the machine and has been considered for calculation depreciation. Another important thing the depreciation has been charged for the entire 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
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end of an estimated four-year service life is expected to be $6,000. The company expects the machine to operate for 20,000 hours. The machine operated for 2,500 and 3,300 hours in 2018 and 2019, respectively. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. c. Calculate depreciation expense for 2018 and...
1. On January 1, 2018, Sanderson Company acquired a machine for $1,060,000. The estimated useful life...
1. On January 1, 2018, Sanderson Company acquired a machine for $1,060,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $109,000. What is the book value of the machine at the end of 2019 if the company uses the straight−line method of depreciation? 2. An asset was purchased for $33,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value...
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
Norika Company purchased a truck for $36,000. The company expected the truck to have a useful...
Norika Company purchased a truck for $36,000. The company expected the truck to have a useful life of four years or 128,000 kilometres, with an estimated residual value of $4,000 at the end of that time. During the first and second years, the truck was driven 22,000 and 32,000 kilometres, respectively. Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods. Assume the purchase of the truck was made at the beginning of the first...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $64,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $64,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 10,000 hours. The machine operated for 3,900 and 4,700 hours in 2018 and 2019, respectively. Calculate depreciation expense for 2018 and 2019 using straight line method. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. Calculate depreciation expense for 2018 and 2019 using double-declining...
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful...
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses straight-line depreciation. Required: 1. Calculate the machine's depreciable cost. 2. Calculate the amount of depreciation expense that will be taken on the machine each year. 3. Calculate the machine's accumulated depreciation and book value at the end of each year.
Asset cost is $68,000 (purchased on 4/1/X1), residual value is $8,000; Useful life of 4 years....
Asset cost is $68,000 (purchased on 4/1/X1), residual value is $8,000; Useful life of 4 years. What is year 1 depreciation expense using Double Declining? Optional Answers: 1. $12,750 2. $17,000 3. $25,500 4. $34,000
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $56,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $56,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,500 and 4,300 hours in 2018 and 2019, respectively. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. c. Calculate depreciation expense for 2018 and...
Sholpan Company purchased a machine for $90,000. The machine had an estimated residual value of $6,000...
Sholpan Company purchased a machine for $90,000. The machine had an estimated residual value of $6,000 and an estimated useful life of 8 years. After two full years of experience with the machine, it was determined that its total useful life would be only 5 years instead of 8. The estimated residual value remains unchanged at $6,000. Compute depreciation expense for the third year. Sholpan Company uses straight-line depreciation.
An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a...
An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of 2012, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the 2012 depreciation expense using the revised amounts and straight line method.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT