A grader has an initial cost of $220,000 and an estimated useful life of 10 years....

Question

Question

A grader has an initial cost of $220,000 and an estimated useful life of 10 years. The salvage value after 10 years of use is

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer:

Initial Cost = $220,000
Salvage Value = $25,000
Useful Life = 10 years

Depreciable Cost = Initial Cost - Salvage Value
Depreciable Cost = $220,000 - $25,000
Depreciable Cost = $195,000

Sum-of-the-years digit = 1 + 2 + … + 9 + 10
Sum-of-the-years digit = 55

Depreciation for Year 4 = $195,000 * (7/55)
Depreciation for Year 4 = $24,818.18

Add a comment

Answer 2

Similar Homework Help Questions

A grader has an initial cost of $220,000 and an estimated useful life of 10 years....

A grader has an initial cost of $220,000 and an estimated useful life of 10 years. The salvage value after 10 years of use is estimated to be $25,000. What is the book value at the end of the eleventh year if the MACRS method of depreciation accounting is used? Select one: a. $0 b. $7,216 c. $19,500 d. $25,000
A machine with a cost of $260,000 has an estimated salvage value of $20,000 and an estimated useful life of 5 years or 1...

A machine with a cost of $260,000 has an estimated salvage value of $20,000 and an estimated useful life of 5 years or 12000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is amount of depreciation for the second full year, during which the machine was used 4000 hours? Multiple Choice Question 209 A machine with a cost of $260000 has an estimated salvage value of $20000 and depreciation for the second full year, during...
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:...

The initial cost of a piece of construction equipment is $4000 000. It has useful life...

The initial cost of a piece of construction equipment is $4000 000. It has useful life of 10 years. The estimated salvage value of the equipment at the end of useful life is $600 000. Calculate the depreciation charge and book value of the construction equipment using straight-line method and declining balance depreciation method in years 1, 4, 6, 9 and 10.
Machinery acquired new on January 1 at a cost of $80,000 was estimated to have a useful life of 10 years and a residual...

Machinery acquired new on January 1 at a cost of $80,000 was estimated to have a useful life of 10 years and a residual salvage value of $20,000. Straight-line depreciation was used. On January 1, following six full years of use of the machinery, management decided that the estimate of useful life had been too long and that the machinery would have to be retired after three years, that is, at the end of the ninth year of service. Under...
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

You purchased a molding machine at a cost of $88,000. It has an estimated useful life...

You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 years with a salvage value of $8,000. What is the 10 year depreciation for this machine computed by the straight line method? $5,894.00 $3,018.00 $6,667.00 $7,073.00
‘When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost...

‘When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and it’s estimated salvage value is $1,500. after 4 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 6 years; there was No change in the estimated salvage value. What is the amount of depreciation expense in 5 years? Show your work a. $5,375.00 b. $2,687.50 c. $5,543.75 d. $10,750.00 e. $ 2,856.25
Revision of Depreciation A building with a cost of $570.000 has an estimated residual value of...

Revision of Depreciation A building with a cost of $570.000 has an estimated residual value of $220,000, has an estimated useful life of 18 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? b. What is the book value at the end of the tenth year of use? c. If at the start of the eleventh year it is estimated that the remaining life is 10 years and that the residual value...

A building with a cost of $585,000 has an estimated residual value of $117,000, has an...

A building with a cost of $585,000 has an estimated residual value of $117,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? $ b. What is the book value at the end of the twentieth year of use? $ c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is...

A grader has an initial cost of $220,000 and an estimated useful life of 10 years....

Homework Answers