A machine which cost $500,000 is acquired on October 1, 2017. Its estimated salvage value is $50,000 and its expected life is eight years. Instructions Calculate depreciation expense for 2017 and 2018 by each of the following methods, showing the figures used.

A machine which cost $500,000 is acquired on October 1, 2017. Its estimated salvage value is $50,000 and its expected life is eight years. Instructions Calculate depreciation expense for 2017 and 2018 by each of the following methods, showing the figures used.

Name: A machine which cost $500,000 is acquired on October 1, 2017. Its esti
Uploaded: 2022-05-24T13:26:03.000Z
Channel: Bartleby
Description: A machine which cost $500,000 is acquired on October 1, 2017. Its estimated salvage value is $50,000 and its expected life is eight years.Instructions Calculate depreciation expense for 2017 and 2018 by each of the following methods, showing th

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

See similar textbooks

Similar questions

A machine which cost $500,000 is acquired on October 1, 2017. Its estimated salvage value is $50,000 and its expected life is eight years. Instructions Calculate depreciation expense for 2017 and 2018 by each of the following methods, showing the figures used. (3a) Double-declining balance (3b) Sum-of-the-years'-digits
A machine cost $900,000 on April 1, 2017. Its estimated salvage value is $90,000 and its expected life is eight years. Instructions (1) Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used. (a) Straight-line for 2017 (b) Double-declining balance for 2018 (c) Sum-of-the-years'-digits for 2018 (2) Which method would result in the smallest income amount for 2018? Callon Co. uses the composite method to depreciate its equipment. The following totals are for all of the equipment in the group: Initial Residual Depreciable Depreciation Cost Value Cost Per Year $1,000,000 $100,000 $900,000 $90,000 Instructions (a) What is the composite rate of depreciation? (To nearest tenth of a…
Five Satins Company purchased a piece of equipment at the beginning of 2017. 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. Instructions Show calculations to determine for what particular year the depreciation amount for this asset will be $60,000.
Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. (A) Calculate the book value at the time of the revision (January 1, 2017). (B) Determine the depreciation expense for 2017
A truck was acquired on july 1, 2014, at a cost of $162,000. The truck had a six-year useful life and an estimated salvage value of $18,000. The straight line method of depreciation was used. On January 1, 2017, the useful life of the truck was extended for additional two years depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned. The fiscal year end is December 31. Instructions Prepare the appropriate entries for December 31, 2017.
Equipment was purchased for $120,000 on March 1, 2016. Its estimated useful life is eight years with a $12,000 expected salvage value. Using double-declining balance depreciation, the 2017 depreciation expense is: A) $22,500 B) $27,000 C) $23,750
Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019: Cost $58,500 Expected salvage value $1,000 Estimated useful life in years 5 Estimated useful life in hours 200,000 Hours used in 2020 is: 48,000 Required: Calculate the depreciation expense of the machine for the year ended 30 June 2019 using: a) Straight-line method b) Unit of activity method c) Declining balance method using double straight-line rate
Telimos purchased a machinery for 315,000 on May 1,2017. It is estimated that it will have a useful life of 10 years,salvage value of 15,000, production of 240,000 units, and workinghours of 25,000. During 2018 it uses the machinery for 2,650 hours, and the machinery produces 25,500 units. From the information given, compute the depreciation charge for 2018 under each of the following methods. (Round to the nearest dollar.) as per units of output, working hours and declining balance method with 20% as annual rate.
(Depreciation Computations—Four Methods) Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31.InstructionsCompute the depreciation expense under the following methods. Each of the following should be considered unrelated.(a) Straight-line depreciation for 2017.(b) Activity method for 2017, assuming that machine usage was 800 hours.(c) Sum-of-the-years’-digits for 2018.(d) Double-declining-balance for 2018.
(Depreciation Computations—Five Methods, Partial Periods) Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2017, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units.InstructionsCompute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31.(a) Straight-line method for 2017.(b) Activity method (units of output) for 2017.(c) Activity method (working hours) for 2017.(d) Sum-of-the-years’-digits method for 2019.(e) Double-declining-balance method for 2018.
Maserati Corporation purchased a new machine for its assembly process on August 1, 2014. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year- end is December 31. Instructions: Compute the depreciation expense under the following methods. (a) Straight-line depreciation. Sum-of-the-Years'-Digits Method Double-Declining Balance Method
Lawson company purchased Equipment on January 1, 2020 for $10,000 units. The salvage value is estimated to be $1,000. During 2020 the equipment was used to produce 25,000 units. First, in the spaces below put the necessary data to be used in the calculations. Second, in the boxes below, calculate depreciation for 2020 using each of the methods indicated. Place your answers in the boxes under the name for each method. notice the effect of the varying depreciation methods on Net Income in the Income Statements to the right. NOTE: You will be graded on the formulas you create to calculate the amount of depreciation. Do not just calculate on paper and put the answers in this spreadsheet