Bridgeport Company purchased a new machine on October 1, 2022, at a cost of $110,500. The company estimated that the machine will have a salvage value of $10,500. The machine is expected to be used for 10,000 working hours during its 4-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. Depreciation expense 2022 6.250

Bridgeport Company purchased a new machine on October 1, 2022, at a cost of $110,500. The company estimated that the machine will have a salvage value of $10,500. The machine is expected to be used for 10,000 working hours during its 4-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. Depreciation expense 2022 6.250

Name: Compute the depreciation expense under units-of-activity for 2022, as
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Description: Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,780 hours. (RoundIntermediate calculations to 2 decimal places, e.g.10.12 and final answer to O decimal places, e.g. 2,125.)Depreciation expense202221,12

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 6CE

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Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
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Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
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