Question

A machine costing $307,800 was purchased May 1. The machine should be obsolete after three years...

A machine costing $307,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $5,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.

a. Straight-line:
Year 1: $Answer
Year 2: Answer
Year 3: Answer
Year 4: Answer
b. Double-declining balance:
Year 1: $Answer
Year 2: Answer
Year 3: Answer
Year 4: Answer
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

explanation

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
Depreciation Methods A machine costing $251,800 was purchased May 1. The machine should be obsolete after...
Depreciation Methods A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar. a. Straight-line: Year 1: $Answer Year...
Depreciation Methods A machine costing $180,000 was purchased May 1. The machine should be obsolete after...
Depreciation Methods A machine costing $180,000 was purchased May 1. The machine should be obsolete after four years and, therefore, no longer useful to the company. The estimated salvage value is $15,000. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar. a. Straight-line: Year 1: Answer Year...
Computing deprecitation under straight-line and double-declining-balance for partial years :- a machiene costign $145,800 is purchased...
Computing deprecitation under straight-line and double-declining-balance for partial years :- a machiene costign $145,800 is purchased on May 1,2016. The machiene is expected to be obsolete after three years (36 months) and, thereafter, no longer useful to the company. The estimated salvage value is $5,400. computre depreciation expense for both 2016 and 2017 under each of the following depreciation methods : 1) straight-line 2) double-declining-balance
II. Assume that a machine is costing $300,000 and having a useful life of five years...
II. Assume that a machine is costing $300,000 and having a useful life of five years (with no salvage value).Required: a. Compute depreciation for year 1 and year 2 using  Straight line  double declining balance b. Compute average useful life of the asset for year 1 using straight line depreciation c. If double declining balance is used to compute the depreciation, how much gain or loss is reported at the end of year 2 if the sales price...
On January 1, 2018, a machine was purchased for $105,000. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $105,000. The machine has an estimated salvage value of $8,100 and an estimated useful life of 5 years. The machine can operate for 114,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 22,800 hrs; 2019, 28,500 hrs; 2020, 17,100 hrs; 2021, 34,200 hrs; and 2022, 11,400 hrs. Compute the annual depreciation charges over the machine’s life assuming...
On January 1, 2017, a machine was purchased for $90,000. The machine has an estimated residual...
On January 1, 2017, a machine was purchased for $90,000. The machine has an estimated residual value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follow; 2017, 20,000 hours; 2018, 25,000 hours; 2019, 15,000 hours; 2020, 30,000 hours; and 2021, 10,000 hours. ((((((((((((((Instructions)))))))))))))))) A) Compute the annual depreciation charges over the machine’s...
Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, 2016, Fischer Company purchases a machine that manufactures...
Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, 2016, Fischer Company purchases a machine that manufactures a part for one of its key products. The machine cost $264,600 and is estimated to have a useful life of six years, with an expected salvage value of $22,500. Compute depreciation expense for 2016 and 2017 for the following depreciation methods. a. Straight-line. b. Double-declining balance. 2016 2017 Straight-line $Answer $Answer Double-declining Answer Answer
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage...
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at the end of its useful life of four years of 100,000 miles.  Assume that the truck was purchased on January 2.  Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production.  (Assume that the truck was driven 30,000 miles in the second year.) a. Straight-line depreciation = (Acquisition Cost - Salvage value)...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 1,150,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance....
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $40,770. The...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $40,770. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $1,080. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT