ZuoTi.Pro
Question

Archie Co. purchased a framing machine for $51,000 on January 1, 2021. The machine is expected...

Archie Co. purchased a framing machine for $51,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $7,000 at the end of four years.

Using the straight-line method, depreciation for 2022 and book value at December 31, 2022, would be:

Multiple Choice

  • $11,000 and $22,000 respectively.

  • $11,000 and $29,000 respectively.

  • $12,750 and $18,500 respectively.

  • $12,750 and $25,500 respectively.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Annual depreciation=(Cost-Salvage value)/Useful Life

=(51,000-7000)/4=$11000

Hence depreciation for 2022=11000

Book value at December 31, 2022=Cost-Accumulated Depreciation

=51,000-(11000*2)=$29,000

Hence the correct option is :

$11,000 and $29,000 respectively.

0 0
Add a comment
Know the answer?
Add Answer to:
Archie Co. purchased a framing machine for $51,000 on January 1, 2021. The machine is expected...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Archie Co. purchased a framing machine for $55,000 on January 1, 2021. The machine is expected...

    Archie Co. purchased a framing machine for $55,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $2,000 at the end of four years. Using the sum-of-the years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round intermediate calculations.) Multiple Choice $16,500 and $16,500 respectively. $16,500 and $14,500 respectively. $15,900 and $17,900 respectively. $15,900 and $15,900 respectively.

  • Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life,...

    Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years. Using the sum-of-the years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: Multiple Choice $13,500 and $13,500 respectively. $13,500 and $8,500 respectively. $12,000 and $17,000 respectively. $12,000 and $12,000 respectively.

  • Archie Co. purchased a framing machine for $53,000 on January 1, 2021. The machine is expected...

    Archie Co. purchased a framing machine for $53,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $6,000 at the end of four years. Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be: (Do not round intermediate calculations.) Multiple Choice $21,200 and $31,800 respectively. $18,800 and $34,200 respectively. $18,800 and $28,200 respectively. $21,200 and $25,800 respectively.

  • 31 Archie Co. purchased a framing machine for $55,000 on January 1, 2021. The machine is...

    31 Archie Co. purchased a framing machine for $55,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $2.000 at the end of four years. Using the double-declining-balance method, depreciation for 2022 and book value at December 31, 2022, would be: 2.5 points 01:32:34 Multiple Choice $13,750 and $13,750 respectively. $13,250 and $2,000 respectively. $13,750 and $11,750 respectively. O $13,250 and $41,750 respectively.

  • Question 6 (1 point) Archie Co. purchased a framing machine for $45,000 on January 1, 2018....

    Question 6 (1 point) Archie Co. purchased a framing machine for $45,000 on January 1, 2018. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years. Using the straight-line method, depreciation for 2019 and book value at December 31. 2019, would be: $10,000 and $20,000. $10,000 and $25,000. $11,250 and $17.500. $11.250 and $22.500. Question 7 (1 point) In testing for recoverability of property, plant, and equipment, an impairment...

  • Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of...

    Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of $200.000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss)...

  • Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have...

    Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000. Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year) Multiple Choice $19,200 and $30,800 respectively. $17,600 and $26,400 respectively. $19,200 and $28,800 respectively. $17,600 and $32,400 respectively.

  • Cutter Enterprises purchased equipment for $51,000 on January 1, 2018. The equipment is expected to have...

    Cutter Enterprises purchased equipment for $51,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $4,500. Using the double-declining balance method, depreciation for 2018 and the book value at December 31, 2018, would be: Multiple Choice $18,600 and $32,400 respectively. $20,400 and $30,600 respectively. $20,400 and $26,100 respectively. $18,600 and $27,900 respectively.

  • 1) Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to...

    1) Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,900 at the end of five years. Using the straight-line method, depreciation expense for 2021 would be: 2) Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method,...

  • $6.000 Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to...

    $6.000 Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be: (Do not round depreciation rate per year) $22,000 and $44,000 respectively $22,000 and $50,000 respectively $24,000 and $42.000 respectively $24,000 and $48,000 respectively

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT