Cartuccl and Sons purchased a machine for $11,395 at the beginning of the year. Additional costs Included $250 freight and $185 for installation. It was estimated that the machine could be operat...
3.) Turtle Company purchased a machine for $49,600 and incurred an additional $2,456 in costs necessary for installation and setup of the machine. The machine is expected to last for 5 years or 175,560 machine-hours. At the end of the machine's useful life, it can be scrapped for an estimated $774. The machine was used for 37,665 machine-hours in the first year and 46,939 machine-hours in the second year, calculate the machine's book value after two years of depreciation expense...
Hawaiian Specialty Foods purchased equipment for $29,000. Residual value at the end of an estimated four-year service life is expected to be $2,900. The machine operated for 3,000 hours in the first year, and the company expects the machine to operate for a total of 18,000 hours. Calculate depreciation expense for the first year using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based. (Do not round your intermediate calculations.) Part Two: Orion Flour Mills...
Marigold Company is considering the purchase of a new machine. Its invoice price is $129,000, freight charges are estimated to be $3,200, and installation costs are expected to be $5,300. Salvage value of the new machine is expected to be zero after a useful life of 4 years. Existing equipment could be retained and used for an additional 4 years if the new machine is not purchased. At that time, the salvage value of the equipment would be zero. If...
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...