Melody Corporation purchased a machine for $500,000. This machine has a useful life of 10 years...
Melody Corporation purchased a machine for $500,000. This machine has a useful life of 10 years and an estimated salvage of $20,000. Depreciation was recorded on a straight-line basis for 8 years. After recording depreciation expense in the 8th year, Melody sold the machine for $100,000. (a) What is the carrying value of the machine at the point of sale? (11 pts) (b) How much gain or loss should Melody report on the sale? (7 pts). Clearly identify if the amount is a gain or a loss
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Melody Corporation purchased a machine for $500,000. This
machine has a useful life of 10 years...
8. A company purchased a machine for $190.000. The machine has a useful life of 8...
8. A company purchased a machine for $190.000. The machine has a useful life of 8 produce 750,000 units over its useful life. Determine depreciation expense when output is 109,000 units A. $25,200. 8. $26,160 С. $ 26,660. D. $27,613. E. $53,160 years, a residual value of $10,000, and can deprecilation method in which a plant asset's depreciation depreciation rate to the asset's beginning-of-period book value is called A. Book value depreciation B. Declining-balance depreciation. C. Straight-ine depreciation. D. Units-of-production...
You purchased a machine five years ago for $100,000. It has a useful life of 10...
You purchased a machine five years ago for $100,000. It has a useful life of 10 years and you depreciate it using straight line depreciation to an expected salvage value at the end of its life of $5,000. It currently has a salvage value of $20,000. You are considering purchasing a new machine for $175,000. The new machine is expected to have a salvage value of $35,000 at the end of its life. It will cost $8,000 to ship the...
A machine has a book value of $500,000 and remaining useful life of 5 years before...
A machine has a book value of $500,000 and remaining useful life of 5 years before an addition was made costing $50,000 that extended its useful life 3 more years. What is the new depreciation rate assuming the machine has no salvage value?
Fill in the blanks. $ Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Years...
Fill
in the blanks.
$ Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Years 50,000 5,000 $ Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Year Carrying Value 50,000 30,000 18,000 10,800 40% 40% 40% 40% 40% $20,000 $12,000 $7,200 $20,000 32,000 39,200 b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declin linnut b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declining balance method. Inputs:...
Machinery was acquired at the cost of $500,000. It has a useful life of 10 years...
Machinery was acquired at the cost of $500,000. It has a useful life of 10 years and a salvage value of $50,000. Calculate the amount of depreciation of each of the first three years using the straight line depreciation method and declining balance method
Problem 7 On June 30, 2017 Bass Company purchased a machine for $1,100,000. The machine has useful life 10 years or 2,0...
Problem 7 On June 30, 2017 Bass Company purchased a machine for $1,100,000. The machine has useful life 10 years or 2,000,000 units with $100,000 salvage value. Bass uses 48,000 units in 2017 and 116,000 units in 2018. Compute depreciation expense for 2017 and 2018 and prepare the necessary JOURNAL ENTRIES at year end December 31 using the following methods: 1. Straight-line (16 pts) 2. Units of activity (16 pts) 3. Double-Declining Balance (10 pts)
On January 1, 2018, Dunbar Echo Co. sells a machine for $25,200. The machine was originally...
On January 1, 2018, Dunbar Echo Co. sells a machine for $25,200. The machine was originally purchased on January 1, 2016 for $45,200. The machine was estimated to have a useful life of 5 years and a residual value of $0. Dunbar Echo uses straight-line depreciation. In recording this transaction: A. a loss of $20,000 would be recorded B. a gain of $1,920 would be recorded. C. a loss of $1,920 would be recorded. D. a gain of $25,200 would...
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been...
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight- line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine Determine the gain or loss in each scenario if the machine sold for: Scenario Gain, Loss, or Neither Amount a $37.000 cash b. $36,800 cash C. $28,000 cash
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and...
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year, 95,000 units were produced. In the second year, production increased to 111,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Multiple Choice $49,440 $22,800 $26,640 $36,000 Factor(s) that might...
On January 1,2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years...
On January 1,2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salvage value of $48600. Coronado has recorded monthly depreciation of the equipment on the straight-line method. Orn December 31,2017, the equipment was sold for $ 152500. As a result of this sale, Coronado should recognize a gain of $88360. $152500. $0. $39760
8. A company purchased a machine for $190.000. The machine has a useful life of 8 produce 750,000 units over its useful life. Determine depreciation expense when output is 109,000 units A. $25,200. 8. $26,160 С. $ 26,660. D. $27,613. E. $53,160 years, a residual value of $10,000, and can deprecilation method in which a plant asset's depreciation depreciation rate to the asset's beginning-of-period book value is called A. Book value depreciation B. Declining-balance depreciation. C. Straight-ine depreciation. D. Units-of-production...
Fill
in the blanks.
$ Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Years 50,000 5,000 $ Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Year Carrying Value 50,000 30,000 18,000 10,800 40% 40% 40% 40% 40% $20,000 $12,000 $7,200 $20,000 32,000 39,200 b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declin linnut b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declining balance method. Inputs:...
Problem 7 On June 30, 2017 Bass Company purchased a machine for $1,100,000. The machine has useful life 10 years or 2,000,000 units with $100,000 salvage value. Bass uses 48,000 units in 2017 and 116,000 units in 2018. Compute depreciation expense for 2017 and 2018 and prepare the necessary JOURNAL ENTRIES at year end December 31 using the following methods: 1. Straight-line (16 pts) 2. Units of activity (16 pts) 3. Double-Declining Balance (10 pts)
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight- line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine Determine the gain or loss in each scenario if the machine sold for: Scenario Gain, Loss, or Neither Amount a $37.000 cash b. $36,800 cash C. $28,000 cash
On January 1,2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salvage value of $48600. Coronado has recorded monthly depreciation of the equipment on the straight-line method. Orn December 31,2017, the equipment was sold for $ 152500. As a result of this sale, Coronado should recognize a gain of $88360. $152500. $0. $39760
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