Question

A machine purchased on 1st October 2015 cost $720,000 and has a $120,000 estimated salvage value....

A machine purchased on 1st October 2015 cost $720,000 and has a $120,000 estimated salvage value. The useful life of the machine is five years.

a) What is the balance of accumulated depreciation as at 31st December 2016.

b) What would be its carrying value on 30th June 2017

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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, 2015, a machine was purchased for $90,900. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $90,900. The machine has an estimated salvage value of $6,060 and an estimated useful life of 5 years. The company closed its books on December 31. Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset’s life applying the following methods. (Round answers to 0 decimal places, e.g. 45,892.) Year Sum-of-the-years'-digits method 2015 - Answer is $ 21210 2016 2017 2018 2019 2020
Marsh Corporation purchased a machine on July 1, 2010, for $1,250,000. The machine was estimated to...
Marsh Corporation purchased a machine on July 1, 2010, for $1,250,000. The machine was estimated to have a useful life of 10 years with an estimated salvage value of $70,000. During 2013, it became apparent that the machine would become uneconomical after December 31, 2017, and that the machine would have no scrap value. Accumulated depreciation on this machine as of December 31, 2012, was $295,000. What should be the charge for depreciation in 2013 under generally accepted accounting principles?...
On January 1, 2015, a company bought a machine for $120,000. The machine has a useful...
On January 1, 2015, a company bought a machine for $120,000. The machine has a useful life of 5 years and a salvage value of $20,000. The company used the double declining balance method of depreciation. What is depreciation for 2016? Select one: a. $28,800 b. $48,000 c. $24,000 d. $40,000 Which answer is FALSE? In accounting for plant assets, accountants must: Select one: a. Record the acquisition cost of the asset. b. Record unit capacity of the asset (e.g.,...
manna manufacturing purchased a machine on january 1, 2015 for $ 42,750. at the time of...
manna manufacturing purchased a machine on january 1, 2015 for $ 42,750. at the time of purchase. the machine was estimated to have a life of four years and a residual value of $7,750. on january 1, 2017, munna determined that the machine had a total useful life of seven years (another five years) and a residual value of $ 4500. if manna uses the straight line method of depreciation, what will be the depreciation expense for the machine in...
(a)    Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at...
(a)    Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, the equipment was sold for $40,000.         Indicate the accounts that are increased and/or decreased to remove the equipment from the books of Brown Company on March 31, 2015. (b)    Finney...
Teal Products purchased a machine on January 1, 2014, for $60,200 and estimated its useful life...
Teal Products purchased a machine on January 1, 2014, for $60,200 and estimated its useful life and salvage value at five years and $12,800, respectively. On January 1, 2017, the company added three years to the original useful-life estimate. (a) Compute the book value of the machine as of January 1, 2017, assuming that Teal uses the straight-line method of depreciation. (b) Prepare the journal entry entered by the company to record depreciation on December 31, 2017.
Sofie’s Soda Co purchased a soda drink machine on January 1st, 2016 for $600,000. The company...
Sofie’s Soda Co purchased a soda drink machine on January 1st, 2016 for $600,000. The company provided the following additional information: Expected useful life is 10 years or 100,000 drinks. In 2016, 6,000 drinks were sold. In 2017, 16,000 drinks were sold. Residual value $20,000. In 2018, 12,000 bottles were sold. The company also provided the following information using three (3) deprecation methods at the end of 2016 and 2017: Method A Year Annual Depreciation Expense Accumulated Depreciation 2016 $         ...
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....
On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year...
On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year          estimated useful life and a $3,000 estimated residual value. In addition, the company expects to use         the machine 200,000 hours. Assuming that the machine was used 35,000 and 45,000 hours during 2010          and 2011, respectively, complete the following chart. Depreciation Expense 1st Year Depreciation Expense 2nd Year Accumulated Depreciation Carrying(Book) Value Straight-line method Units-of-Production Method Double declining Balance Method
On January 1, 2020, Concord Corporation purchased a new machine for $4260000. The new machine has...
On January 1, 2020, Concord Corporation purchased a new machine for $4260000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $147000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Concord's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? $4113000 $2706200 $2614800 $3437400
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT