Question 7 Table 8-2 Vanadia Company acquired a $40,000 machine on January 1, 20X9. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000. For unit depreciation purposes, the machine is expected to produce 500,000 units. Referring to Table 8-2, if Vanadia Company uses unit depreciation, and the company produces 80,000 units in 20X9, what will be the depreciation expense for 20X9? $8,000 $6,400 $8,800 $5,760 $7,200
Solution:
Depreciation expense per unit = (40000 - 4000) / 500000 = $0.072
Depreciation expense for 20x9 = 0.072*80000 = $5,760
Question 7 Table 8-2 Vanadia Company acquired a $40,000 machine on January 1, 20X9. The machine...
Question 3 Table 8-3 Machiel Manufacturing acquired a $60,000 machine on January 1, 20X9. The machine is estimated to have a useful life of 4 years, and a residual value of $10,000. For unit depreciation purposes, the machine is expected to produce 500,000 units. Referring to Table 8-3, if Machiel Manufacturing uses straight-line depreciation, what is the depreciation expense in 2X11? $12,500 $ 8,000 $ 8,800 $ 7,200 $ 3,686
Question 4 Table 8-3 Machiel Manufacturing acquired a $60,000 machine on January 1, 20X9. The machine is estimated to have a useful life of 4 years, and a residual value of $10,000. For unit depreciation purposes, the machine is expected to produce 500,000 units. Referring to Table 8-3, what is the depreciable value of the machine acquired by Machiel Manufacturing? $50,000 $10,000 $15,000 $60,000 Cannot be determined without additional data
Farthing Company acquired a $40,000 machine on January 1, 20X4. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000.What is the depreciable value of the machine acquired by Farthing Company? $8,000 cannot be determined without additional data $4,000 $40,000 $36,000
Machiel Manufacturing acquired a $60,000 machine on January 1, 2009. The machine is estimated to have a useful life of 4 years, and a residual value of $10,000. For units-of-production depreciation purposes, the machine is expected to produce 500,000 units. If Machiel Manufacturing uses double-declining-balance depreciation, what is the depreciation expense in 2010? Select one: A. $25,000 B. $ 8,640 C. $ 9,600 D. $15,000 E. $12,500
Heatherbrae Co. uses the units-of-prodyction method to estimate depreciation. The company purchased a new machine for $40,000 that will produce an estimated 250,000 units over its useful ife. The estimated residual value of the machine is $4,000. What is the depreciation rate per unit? Multiple Choice $1.16 $1.14 $0.16 $014 5 of 7 Score answer> <Prev
ABC corp acquired a machine on January 1, 2015 for $240,000. The machine has an estimated useful life of 4 years and a residual value of $40,000. ABC corp used the double-declining balance method of depreciation. What depreciation expense should ABC corp recognize for this machine in 2017?
On January 1, 2015, Swift Corporation, a small manufacturer of
machine tools, acquired new industrial equipment for $1,320,000.
The new equipment had a useful life of five years and the residual
value was estimated to be $60,000. Swift estimates that the new
equipment can produce 14,500 machine tools in its first year. It
estimates that production will decline by 1,000 units per year over
the equipment’s remaining useful life.
The following depreciation methods may be used: (1) straight-line,
(2) double-declining-balance,...
Williams company purchased a machine on January 1, 2014 by paying cash of $300,000. The machine has an estimated useful life of six years is expected to produce 400,000 units and has an estimated residual value of $40,000. a. Calculate depreciation expense to the nearest whole dollar for each year of the machine's useful life under 1. straight-line depreciation method 2. double declining - balance method b. What is the book value of the machine after three years using the...
Marshall Company purchases a machine for $840,000. The machine has an estimated residual value of $40,000. The company expects the machine to produce four million units. The machine is used to make 680,000 units during the current period. If the units-of-production method is used, the depreciation expense for this period is:
a) A high precision manufacturing CNC machine was acquired on January 1 of Year lata 2. (18 2 .000. It has an estimated useful life of 5 years. It is also expected to have a useful operating east of $32. of 27.000 hours. It will have a residual (salvage) value of $1,000 Complete the depreciation table below for the first three years. (12 points) Year Hours of Machine Use in Year Depreciation Expense Straight Line Method Depreciation Expense Units of...