A company has just purchased a machine for $76,000. The plant engineer estimates the machine has...
A company has just purchased a machine for $76,000. The plant
engineer estimates the machine
has a useful life of 5 years and no salvage value. Compute the
depreciation at the end of year 3
using straight line depreciation.
Homework Answers
ANswer
straight line depreciation=( initial cost - salvage value)/life
=(76000-0)/5
=15200
the straight line depreciation is the same for all years, and that is $15200
Add Answer to:
A company has just purchased a machine for $76,000. The plant
engineer estimates the machine
has...
machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost...
machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
purchased 1/1/13
machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
purchased 1/1/18
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5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (c) If you want to sell the machine in 4th year what book value you will use? (a) What book value you will use to pay tax to IRS in 4 year?
Problem 7 On June 30, 2017 Bass Company purchased a machine for $1,100,000. The machine has useful life 10 years or 2,0...
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A company just bought a new machine for $100,000. It has no salvage value and useful...
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machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
purchased 1/1/13
machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
purchased 1/1/18
Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning...
Question 33 Ermler Company purchased a machine at a cost of $80,000. The machine is expected to have a $5,000 salvage value at the end of its 5-year useful life. Compute annual depreciation for the first and second years using the Straight-line method. Year 1 Year 2 Straight-line method Compute annual depreciation for the first and second years using the Double-declining-balance method. Year 1 Year 2 Double-declining-balance method
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (e) If you want to sell the machine in 4th year what book value you will use? (d) What book value you will use to pay tax to IRS in 4th year?
5. (20 Points) A company purchased a machine...
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5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (c) If you want to sell the machine in 4th year what book value you will use? (a) What book value you will use to pay tax to IRS in 4 year?
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