Revision of Depreciation People's Clinic purchased a special machine for use in its laboratory on January...

Question

Question

Revision of Depreciation Peoples Clinic purchased a special machine for use in its laboratory on January 2, 2016. The machin

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Straight line Method of Depreciation

>> Depreciation for 2016 = ( 100000 - 6000 ) / 10 = $ 9400.

>> Depreciation for 2017 = ( 100000 - 6000 ) / 10 = $ 9400.

In 2018 it is estimated that asset as total useful life of 7 years i.e it has remaining period of 5 years. and estimated salvage value is $ 7500. and book value at beginning of the 2018 year = ( 100000 - 9400 -9400 ) = 81200.

>> Depreciation for 2018 = ( 81200 - 7500 ) / 5 = $ 14740.

>> If an change in useful life of the asset or salvage value of asset then we should depreciate the remaining period of asset with revised estimates.

Add a comment

Answer 2

Similar Homework Help Questions

Revision of Depreciation People's Clinic purchased a special machine for use in its laboratory on January...

Revision of Depreciation People's Clinic purchased a special machine for use in its laboratory on January 2, 2016. The machine cost $100,000 and was expected to last 10 years. Its salvage value was estimated to be $6,000. By early 2018, it was evident that the machine will be useful for a total of only seven years. The salvage value after seven years was estimated to be 57.500. People's Clinic uses straight- line depreciation. Compute the proper depreciation expense on the...
Simple Solutions purchased a new machine on January 1, 2016 for $62,000. It is expected to...

Simple Solutions purchased a new machine on January 1, 2016 for $62,000. It is expected to have a useful life of 5-years or 24,000 machine hours and a $2,000 salvage value. The company feels the equipment will be used extensively in the early years. a. Calculate the depreciation expense for each of the 5 years, assuming the use of the straight-line method. b. Calculate the depreciation expense for each of the 5 years, assuming the use of an accelerated method...
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used...

Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $100,000, and its estimated useful life was four years or 950,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2....

Depreciation Calculations Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory....

Depreciation Calculations Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory. The following data relate to the machine: Price $38,500 Delivery charges $450 Installation charges $550 Date purchased May 1, 2017 Estimated useful life: In years 10 years In hours of production 25,000 hours of operating time Salvage value $2,000 During 2017, the machine was used 2,000 hours. During 2018, the machine was used 3,000 hours. Required: 1. Determine the depreciation expense and the year-end...
Compute depreciation expense for all years (assume straight-line depreciation) for Bubble Corporation. 4/1/16 Purchased machine for...

Compute depreciation expense for all years (assume straight-line depreciation) for Bubble Corporation. 4/1/16 Purchased machine for $22,000 with a salvage value of $2,000. The estimated useful life is 20 years. 7/1/17 $2,000 improvement to machine. Salvage value changed to $250 7/1/18 Changed estimated useful life to a total of 10 years remaining 11/1/19 Sold machine for $20,000 Please do the years 2016, 2017, 2018, and 2019. The answers are $750 $1,100 $2,190 $1,825 I just am confused how to solve...
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used...

Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $125,000, and its estimated useful life was four years or 1,200,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2....

Mashed Potato Inc. purchased a machine in January of 2016 for $20,000. The machine had an...

Mashed Potato Inc. purchased a machine in January of 2016 for $20,000. The machine had an estimated useful life of 10 years, no salvage value, and was depreciated on a straight-line basis. At the beginning of 2019, Mashed Potato overhauled the machine at a cost of $50,000, which extended the machine’s original life by 9 years. What is the amount of depreciation expense for the machine in 2021?
On January 1, 2014, a machine was purchased for $120,000. The machine has an estimated salvage...

On January 1, 2014, a machine was purchased for $120,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 6 years. The machine can operate for 200,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2014, 35,000 hrs; 2015, 45,000 hrs; 2016, 55,000 hrs; 2017, 30,000 hrs; 2018, 20,000 hrs; 2019, 15,000 hrs. (a) Compute the annual depreciation charges over the...
On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage...

On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage value of $6,780 and an estimated useful life of 5 years. The machine can operate for 113,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 22,600 hrs; 2016, 28,250 hrs; 2017, 16,950 hrs; 2018, 33,900 hrs; and 2019, 11,300 hrs.Please show calculations for all problems below. 1) Compute the annual...

Sage Company uses special strapping equipment in its packaging business. The equipment was purchased in January...

Sage Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $12,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence of Sage’s equipment. Sage’s controller estimates that expected future net cash flows on the equipment will be $ 7,749,000 and that the fair value of the equipment is $ 6,888,000. Sage intends to continue using the...

Revision of Depreciation People's Clinic purchased a special machine for use in its laboratory on January...

Homework Answers

Add Answer to:
Revision of Depreciation People's Clinic purchased a special machine for use in its laboratory on January...

Post as a guest

Earn Coins