Question

ooERDIGTs (SYD) METHOD OF DEPRECIAO Assume all companies are on a calendar year unless otherwise stated On January 1, 20X1, your company purchases for $550,000 a machine with an estimated useful life of 10 years and a salvage value of $50,000. Using SYD depreciation, the 20X2 depreciation expense is: a. $81,818 b. $90,000 c. $18,182 d. $200,000 On January 1, 20X1, your company purchases for $450,000 a machine with an estimated useful What is 20X4 depreciation expense? 2. life of 7 years and a salvage value of $40,000. Using SYD depreciation, a. $73,214 b. $64,286 c. $58,571 d. $87,857 3.V On July 11, 20X1, your firm purchases for $125,000 a machine with an estimated useful life of 8 years and a salvage value of $5,000. Your firm uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month and assets purchased after the 15th as though they were acquired the following month. What is 20x1 depreciation expense? a. $11,111 b. $13,333 c. $26,667 d. $13,889 On January 12, 20X1, your company purchases for $125,000 a machine with an estimated useful life of 15 years and a salvage of $5,000. Your company uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month 4. for the entire month and assets purchased after the 15th as though they were acquired the following month. What is the machine's book value at the end of 20X1? a. $107,143 b. $115,000 c. $113,718 d. $110,000 On February 28, 20x1, your company purchases for $150,000 a machine with an estimated useful life of last 10 years and a salvage value of $10,000. Your company 5. uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month and assets purchased after the 15th as though they were acquired the following month. What is 20X1 depreciation expense? a. $21,212 b. $23,333 c. $25,455 d. $27,273

Answer 1

1. Depreciation for 2002

= ($550,000-$50,000)*(9/55)

= $81,818

2. Depreciation for 2004

= ($450,000-$40,000)*(4/28)

= $58,571

3. Depreciation for 2001

= ($125,000-$5,000)*(8/36)*(1/2)

= $13,333

4. Depreciation for 2001

= ($125,000-$5,000)*(15/120)

= $15,000

Book value at the end of 2001

= $125,000-$15,000

= $110,000

5.Depreciation expense for 2001

= ($150,000-$10,000)*(10/55)*(10/12)

= $21,212