Foster Company bought equipment on January 3 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is
Select one:
a. $1,111.
b. $1,222.
c. $1,000.
d. $9,000.
e. $2,000.
Answer is $1,000
Cost of Equipment = $10,000
Salvage Value = $1,000
Useful Life = 9 years
Depreciable Cost = Cost of Equipment - Salvage Value
Depreciable Cost = $10,000 - $1,000
Depreciable Cost = $9,000
Annual Depreciation = Depreciable Cost / Useful Life
Annual Depreciation = $9,000 / 9
Annual Depreciation = $1,000
Therefore, the amount of one year’s depreciation is $1,000
Foster Company bought equipment on January 3 of this year for $10,000. At the time of...
MacGyver Company bought equipment on January 3, 2019, for $35,500. At the time of purchase, the equipment was estimated to have a useful life of 5 years and a salvage value of $1,300. Using the straight-line method, the amount of one year's depreciation is ! o o o o
107. Porter Company purchased equipment for $450,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $20,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be a. $50,000. b. $30,000. c. $54,440. d. $34,440. 108. A plant asset was purchased on January 1 for $50,000 with an estimated salvage value of $10,000...
MacGyver Company bought equipment on M ary 2009 for $15 BOO Altheme of purchase the equipment was estimated to have a useful life of 5 years and a salvage value of $1240 Using the straight line method the amount of one year's depreciations Multiple Choice ОООО
On January 1, 2016, Walid Company purchases equipment for $12,000 with 4 years estimated useful life and no salvage value. On January 1, 2019, Walid Company retires the equipment. The straight-line method of depreciation is applied and financial statements are prepared yearly. The retirement entry is: * On January 1, 2018, Zak Company purchases equipment for $24,000, with an estimated useful life of 4 years and no salvage value. The straight-line depreciation method is applied and financial statements are prepared...
ABC Company bought a piece of equipment on January 1, 2017. The original price was $30,000. Because ABC paid in cash, they received a 20% discount on the original price. To prepare the equipment for its intended use, ABC incurred $100 installation costs and $1,000 shipping costs. They hired an employee to operate the equipment for an annual salary of $20,000. Finally, the company paid an insurance premium of $400 in advance. The company estimated the equipment’s useful life to...
On January 1, Year 1, Fukisan purchased a new piece of equipment for specialized-furniture manufacturing at a cost of $300,000, inclusive of shipping and installation. At the time of purchase, the equipment had an estimated useful life of 15 years and an expected salvage value of $10,000 at the end of the 15 years. For future budgeting purposes, Eric Anderson, CFO of Fukisan Inc. has asked you to perform the depreciation expense calculations for Year 2, Year 3, and Year...
Mama's Fried Chicken bought equipment on January 2, 2018, for $18,000. The equipment was expected to remain in service for four years and to operate for 5,000 hours. At the end of the equipment's useful life, Mama's estimates that its residual value will be $3,000. The equipment operated for 500 hours the first year, 1,500 hours the second year, 2,000 hours the third year, and 1,000 hours the fourth year. Read the requirements. Requirement 1. Prepare a schedule of depreciation...
Sandhill Co. bought equipment for $600000 on January 1, 2016. Sandhill estimated the useful life to be 4 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Sandhill decides that the business will use the equipment for a total of 9 years. What is the revised depreciation expense for 2017?
Carla Vista Co, bought equipment for $290000 on January 1, 2016. Carla Vista estimated the useful life to be 10 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Carla Vista decides that the business will use the equipment for a total of 11 years. What is the revised depreciation expense for 20172 O $13050. O $29000 O $26100. O $23727
5. Harrah's Copy Shop bought equipment for $240,000 on January 1, 2016. Jack estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Jack decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2017? a. $80,000. b. $32,000. C. $40,000. d. $60,000. 3 years