Problems 7-12 use the following information: A firm purchased a new piece of equipment with anestimated useful life of five years. The cost of the equipment was $55,000. The salvage value is estimatedto by $5,000 at the end of year 5.Using the Double-Declining Balance method of depreciation, what is the value of depreciation for year 5?A. 2,128B. 5,000OC.2,851D. 7,920E. 7,128

The Double - declining balance method of depreciationDepreciation= 2 / life time= 2 / 5= 0.40

Answered: Problems 7-12 use the following…

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....

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, 4,000
IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
Equipment with a cost of $168,287 has an estimated residual value of $8,321 and an estimated life of 7 years or 13,054 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,195 hours? a.$50.07 b.$39,152.09 c.$22,852.29 d.$7.00
Equipment with a cost of $156,668 has an estimated residual value of $8,790 and an estimated life of 4 years or 15,613 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,314 hours? a. $36,969.50 b. $44.62 c. $4.00 d. $31,388.44
Problems 7-12 use the following information: A firm purchased a new piece of equipment with an estimated useful life of five years. The cost of the equipment was $55,000. The salvage value is estimated to by $5,000 at the end of year 5. Using the Double-Declining Balance method of depreciation, what is the value of "alpha"? A. 0.5 B. 0.4 C. 0.2 D. 0 .8 E. 0.6
26. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of eight years. The equipment is estimated to have a salvage value of $10,000. Assuming the double declining balance method of depreciation, what is the depreciation for the second year?A $33,333B. $35,625C. $31,667D. $47,500

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