Question

On March 1, 2000, Barnes Company purchased equipment at a cost of $50,000. The equipment was...

On March 1, 2000, Barnes Company purchased equipment at a cost of $50,000. The equipment was estimated to have a salvage value of $5,000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. Barnes is a calendar-year company. What should be the charge for depreciation of this equipment for the year ended December 31, 2002?

a. $8333.3

b. $10000

c.$8958.4

d. 7708.3

I KNOW THE ANSWER IS D..PLEASE HELP EXPLAIN THE SOLUTION

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
Five Satins Company purchased a piece of equipment at the beginning of 2014. The equipment cost...
Five Satins Company purchased a piece of equipment at the beginning of 2014. The equipment cost $430,000. It has an estimated service life of 8 years and an expected salvage value of $70,000. The sum-of-the-years'-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $60,000 will be depreciated for a particular calendar year. Determine for what particular year the depreciation amount for this asset will be $60,000.
On January 1, 2017 ABC Company purchased equipment costing $10,000,000, and its residual value is $100,000....
On January 1, 2017 ABC Company purchased equipment costing $10,000,000, and its residual value is $100,000. The estimated useful life of the asset is four years. Further, management expects to use the equipment for 9,900 hours over its life. In 2017 the equipment was used for 1,000 hours, and in 2018 the equipment was used for 5,000 hours. Compute depreciation for calendar years 2017 AND 2018 under the following method Sum-of-the-year’s digits
Bridgeport Company purchased equipment for $228,800 on October 1, 2017. It is estimated that the equipment...
Bridgeport Company purchased equipment for $228,800 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 39,200 units and estimated working hours are 19,800. During 2017, Bridgeport uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Bridgeport is on a calendar-year basis ending December 31. (Round rate per hour and rate...
9) Cedar Company purchased equipment that cost $100,000 on January 1, 2019. The entire cost was...
9) Cedar Company purchased equipment that cost $100,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had a ten-year life. Cedar uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Cedar is subject to a 20% tax rate. What is the adjustment to retained earnings at January 1, 2022? _______ 11) Saturn Company purchased a machine on January 1, 2018, for $900,000. At the date of...
a company has purchased equipment whose first cost is $ 100,000 with an estimated life of...
a company has purchased equipment whose first cost is $ 100,000 with an estimated life of eight years.the estimated salvage value of the equipment at the end of its lifetime is $ 20,000 determine the depreciation charge and book value at the end of various years using sinking fund method of depreciation with an interest rate of %12 compounded annually
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $54,000. Residual value at the end...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $54,000. Residual value at the end of an estimated 7 year service life is expected to be $26,000. The company expects the equipment to operate for 16,000 hours. Required: a. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on January 1, 2021. b. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on March 31, 2021.
Mike's Company purchased equipment that cost $118,000 on August 1, 2018. The equipment has an estimated...
Mike's Company purchased equipment that cost $118,000 on August 1, 2018. The equipment has an estimated useful life of eight years with an estimated salvage of $10,000. Mike's Company has a December 31 year-end. Calculate the following, showing all of your computations well-labeled and in good form under each of the followingindependent scenarios: 1. The equipment is depreciated using machine hours. The machine is expected to be used for a total of 110,000 hours over it estimated useful life. The...
Exercise 11-6 Bonita Company purchased equipment for $228,960 on October 1, 2017. It is estimated that...
Exercise 11-6 Bonita Company purchased equipment for $228,960 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,720. Estimated production is 40,800 units and estimated working hours are 20,100. During 2017, Bonita uses the equipment for 520 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Bonita is on a calendar-year basis ending December 31. (Round rate per hour...
Marigold Company purchased a new plant asset on April 1, 2020, at a cost of $723,000....
Marigold Company purchased a new plant asset on April 1, 2020, at a cost of $723,000. It was estimated to have a service life of 20 years and a salvage value of $59,400. Marigold’ accounting period is the calendar year. (a) Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2020 $enter a dollar amount Depreciation for 2021
On July 1, 2020, Flint Company purchased for $3,960,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Flint Company purchased for $3,960,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $165,000. Depreciation is taken for the portion of the year the asset is used. (a) Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT