Question

A depreciable asset with a three-year life has a first cost of $30,000 with a $6,000...

A depreciable asset with a three-year life has a first cost of $30,000 with a $6,000 salvage value. The machine's operating cost is $10,000 in year one, $12,000 in year two and $14,000 in year three. According to the straight line method, the depreciation charge in year 2 is closest to:

A.

$8,000

B.

$10,000

C.

$20,000

D.

$22,000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Peavey Enterprises purchased a depreciable asset for $24,000 on April 1, Year 1. The asset will...
Peavey Enterprises purchased a depreciable asset for $24,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,400, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? $4,500 $5,400 $18,000 $14,850 $21,600
Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000....
Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset’s depreciation expense in Year 2 will be: A) 90000 B) 54000 C) 42000 D) 16000 E) 36000
On January 1, Year 2, Ballard Company spent $8,000 on an asset to improve its quality....
On January 1, Year 2, Ballard Company spent $8,000 on an asset to improve its quality. The asset had been purchased on January 1, Year 1, for $30,000. The asset had a $3,600 salvage value and a 6-year life. Ballard uses straight-line depreciation. What would be the book value of the asset on January 1, Year 5? Multiple Choice: $13,200. $15,600. $12,000. $6,000.
George bought a piece of equipment for $30,000. The equipment has a useful life of 4...
George bought a piece of equipment for $30,000. The equipment has a useful life of 4 years and a salvage value of $2,000 at the end of its useful life. Assume that the annual interest is 9%. 1. Calculate the book value at the end of year 2, using the straight line depreciation method. a. $18,000 b. $16,000 c. $14,000 d. $12,000 2. Calculate the present value of depreciation, using the straight line depreciation method. a. $20,756 b. $21,383 c....
Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000....
Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be: Select one: a. $54,000 b. $16,000 c. $42,000 d. $36,000
A company purchase an asset wiht 5- year depreciable life for 75,000 with no expected salvage...
A company purchase an asset wiht 5- year depreciable life for 75,000 with no expected salvage value. The company uses straight line depreciation for financial statement and uses double-declining for tax accounting. Assume a tax rate of 34% What is the value of the company's deferred tax account at the end of the second year? Correct Answer: 6120 Can you show me how to solve this problem?
calculation of Book Value On June 1,20--, a depreciable asset was acquired for $5,520. The asset...
calculation of Book Value On June 1,20--, a depreciable asset was acquired for $5,520. The asset has an estimated useful life if five years (60 month's) and no salvage value. Using the straight line depreciation method, calculate the book value as of Dec 31, 20--. If necessary, round your anssea to two decimal places.
A company purchased a delivery van for $30,000 with a salvage value of $6,000 on July...
A company purchased a delivery van for $30,000 with a salvage value of $6,000 on July 1, Year 1. It has an estimated useful life of 4 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?
A) The depreciation deduction for year 9 of an asset with a 20-year useful life is...
A) The depreciation deduction for year 9 of an asset with a 20-year useful life is $4,900. If the salvage value of the asset was estimated to be 2,500 and straight line depreciation was used to calculate the depreciation deduction for year 9, what was the initial cost of the asset? B) A lumber company purchases and installs a wood chipper for $205,000. The chipper is classified as MACRS 7-year property. The chipper’s useful life is 9 years. The estimated...
Given an asset with initial cost of $20,000, useful life of 5 years, salvage value =...
Given an asset with initial cost of $20,000, useful life of 5 years, salvage value = 0, find the depreciation allowancesand the book values using the    a. Straight-Line Method b. MACRS NO EXCEL. handwritten explanation.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT