Question

Multiple Choice Question 122 Sheffield Company purchased equipment for $48600 on January 1, 2018. The company expects to use
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution: $1350

Explanation

Annual Depreciation=Value of Machine-Salvage value/Estimated life of Machine

=48600-0/3

= $16200

Monthly Depreciation=16200/12

= $1350

Add a comment
Know the answer?
Add Answer to:
Multiple Choice Question 122 Sheffield Company purchased equipment for $48600 on January 1, 2018. The company...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Sheffield Company purchases equipment on January 1, Year 1, at a cost of $570,000. The asset...

    Sheffield Company purchases equipment on January 1, Year 1, at a cost of $570,000. The asset is expected to have a service life of 12 years and a salvage value of $51,300. * Your answer is incorrect. decimal Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to places, e.g. 5,125.) Depreciation for Year 1 $ 47310 43383 Depreciation for Year 2 $ Depreciation for Year 3 $ 39782 eTextbook...

  • Jones Company purchased equipment for $18,000 on January 1, 2020. The company expects to use the...

    Jones Company purchased equipment for $18,000 on January 1, 2020. The company expects to use the equipment for 3 years. It has no salvage value. Monthly depreciation expense on the asset is: $500. $250. $6,000. $1,500.

  • On January 1, 2018. Poultry Processing Company purchased a freezer and related installation equipment for $68.400....

    On January 1, 2018. Poultry Processing Company purchased a freezer and related installation equipment for $68.400. The equipment had a three-year estimated life with a $3,300 salvage value. Straight-line depreciation was used. At the beginning of 2020. Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,300. Required Compute the depreciation expense for each of the four years, 2018-2021. Depreciation Expense 2018 2019 2020 2021

  • On January 1 2018, Poultry Processing Company purchased a freezer and related installation equipment for $65,400. The eq...

    On January 1 2018, Poultry Processing Company purchased a freezer and related installation equipment for $65,400. The equipment had a three-year estimated life with a $4,200 salvage value. Straight-line depreciation was used. At the beginning of 2020, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3200. Required Compute the depreciation expense for each of the four year, 2018-2021 Depreciation Expense 2018 2019 2020 2021

  • View Policies Current Attempt in Progress On January 1, 2017, Bramble Inc. purchased equipment for $44800....

    View Policies Current Attempt in Progress On January 1, 2017, Bramble Inc. purchased equipment for $44800. The company is depreciating the equipment at the rate of $790 per month. At January 31, 2018, the balance in Accumulated Depreciation is $9480 $790. $10270 $34530 Save for Later Attempts: 0 of 1 used Submit Answer 103 Giv

  • On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated...

    On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 15 years and had a salvage value of $7,000. On January 1, 2024, ABC Company decided the life of the equipment should be revised from 15 to 18 years. Calculate the depreciation expense recorded on the equipment for 2024 assuming ABC Company uses the straight line depreciation method.

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

    Sheffield Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $11,700,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Sheffield’s equipment. Sheffield’s controller estimates that expected future net cash flows on the equipment will be $7,371,000 and that the fair value of the equipment is $6,552,000. Sheffield intends to continue using the equipment,...

  • Multiple-Choice Exercise 7-1 Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost...

    Multiple-Choice Exercise 7-1 Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost of trial runs 750 Installation costs 250 Sales tax 2,600 What is the cost of the equipment? Oa. $52,000 Ob. $54,600 Oc. $54,850 Od. $55,600 Multiple-Choice Exercise 7-2 The cost principle requires that companies record tangible capital assets at: Oa. fair value. Ob. book value. Oc. historical cost. d. market value. Multiple-Choice Exercise 7-3 When depreciation expense is recorded each period, what account is...

  • QUESTION 24 Entity L purchased equipment for $22,000 on January 1, 2022. The company expects to...

    QUESTION 24 Entity L purchased equipment for $22,000 on January 1, 2022. The company expects to use the equipment for 5 years and uses straight line depreciation. The equipment has no salvage value. The entry to record depreciation expense on December 31, 2022 will include: a credit to Equipment for $4.400 a credit to Depreciation Expense - Equipment for $4,400 a debit to Depreciation Expense - Equipment for $4,400 a debit to Accumulated Depreciation - Equipment $4,400.

  • 22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that...

    22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as Depreciation Expense at December 31, 2018 is a. $20,000 b. $18,000. c. $16,000. d. $14,000. 23. A company purchased factory equinment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at...

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