An asset was purchased for $105,000 on January 1, Year 1 and originally estimated to have...
An asset was purchased for $105,000 on January 1, Year 1 and originally estimated to have a useful life of 12 years with a residual value of $13,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method. Round your answer to the nearest dollar.
Homework Answers
Answer--------Depreciation for year 3 = $21,938
Working
| Straight line Method -For year 1 and 2 | ||
| A | Cost | $ 105,000 |
| B | Residual Value | $ 13,500 |
| C=A - B | Depreciable base | $ 91,500 |
| D | Life [in years left ] | 12 |
| E=C/D | Annual SLM depreciation | $ 7,625.00 |
.
| Depreciation schedule-Straight line method- For first 2 complete years | ||||
| Year | Book Value | Depreciation expense | Accumulated Depreciation | Ending Book Value |
| 1 | $ 105,000.00 | $ 7,625.00 | $ 7,625.00 | $ 97,375.00 |
| 2 | $ 97,375.00 | $ 7,625.00 | $ 15,250.00 | $ 89,750.00 |
.
| Straight line Method -For year 3 and onward | ||
| A | Ending book value at Year 2 end | $ 89,750 |
| B | Residual Value | $ 2,000 |
| C=A - B | Depreciable base | $ 87,750 |
| D | Life [in years left ] | 4 |
| E=C/D | Annual SLM depreciation | $ 21,938 |
Add Answer to:
An asset was purchased for $105,000 on January 1, Year 1 and
originally estimated to have...
An asset was purchased for $101,000 on January 1, Year 1, and originally estimated to have...
An asset was purchased for $101,000 on January 1, Year 1, and originally estimated to have a useful life of 12 years with a residual value of $12,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,800. Calculate the third-year depreciation expense using the revised amounts and straight-line method. Round your answer to the nearest dollar.
An asset was purchased for $63,000 and originally estimated to have a useful life of 10...
An asset was purchased for $63,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,200. a) Determine the amount of the annual depreciation for the first two years. $ b) Determine the book value at the end of Year 2. c) Determine the depreciation expense...
An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $...
An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $3,500. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only two years with a residual value of $1,400. a) Determine the amount of the annual depreciation for the first two years. $ b) Determine the book value at the end of Year 2. $ c) Determine the depreciation...
1. An asset was purchased for $65,000 and originally estimated to have a useful life of...
1. An asset was purchased for $65,000 and originally estimated to have a useful life of 10 years with a residual value of $3,600. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,440. a) Determine the amount of the annual depreciation for the first two years. $ b) Determine the book value at the end of Year 2. $ c) Determine the...
1) An asset was purchased for $71,000 and originally estimated to have a useful life of...
1) An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $3,400. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,360. a. Determine the amount of the annual depreciation for the first two years. $ b. Determine the book value at the end of Year 2. $ c. Determine the...
Question 11 A plant asset was purchased on January 1 for $40,000 with an estimated salvage...
Question 11 A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's depreciation expense is $4,000 calculated on the straight-line basis and the balance in the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is O 10 years. 8 years. 3 years. O 5 years.
A machine originally had an estimated service life of 5 years, and after 3 years, it...
A machine originally had an estimated service life of 5 years, and after 3 years, it was decided that the original estimate should have been for 10 years. The remaining cost to be depreciated should be allocated over the next Multiple Choice 5 years 6 years 10 years 7 years 2 years Creek Construction owned a bulldozer which was destroyed by fire. The bulldozer originally cost $38,000. The accumulated depreciation recorded to the date of loss was $20,000. The proceeds...
When the amount of use of a fixed asset varies from year to year, the method...
When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that is proportional to the use of the asset is: O declining-balance method straight-line method O units-of-output method direct-units method A machine was acquired on January 1 of the current year. It had a cost of $75,000, an estimated residual value of $5,000, and an estimated useful life of 4 years or 18,000 hours. What is the amount of depreciation...
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $43,000 and its e...
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $43,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is Multiple Choice 3) $10,000 $25.000 5972 Multiple Choice o $10,000 o $25,000 o $9725 o $6.525
Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had...
Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had an estimated useful life of eight years and an estimated residual value of $8,000. After using the equipment for three years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004 Determine the straight-line depreciation expense for Year 4 and the following years.
An asset was purchased for $63,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,200. a) Determine the amount of the annual depreciation for the first two years. $ b) Determine the book value at the end of Year 2. c) Determine the depreciation expense...
Question 11 A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's depreciation expense is $4,000 calculated on the straight-line basis and the balance in the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is O 10 years. 8 years. 3 years. O 5 years.
When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that is proportional to the use of the asset is: O declining-balance method straight-line method O units-of-output method direct-units method A machine was acquired on January 1 of the current year. It had a cost of $75,000, an estimated residual value of $5,000, and an estimated useful life of 4 years or 18,000 hours. What is the amount of depreciation...
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $43,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is Multiple Choice 3) $10,000 $25.000 5972 Multiple Choice o $10,000 o $25,000 o $9725 o $6.525
Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had an estimated useful life of eight years and an estimated residual value of $8,000. After using the equipment for three years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004 Determine the straight-line depreciation expense for Year 4 and the following years.
Most questions answered within 3 hours.
-
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 20 minutes ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 2 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 2 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 3 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 3 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 4 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 4 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 4 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 5 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 5 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 5 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 6 hours ago