JJ Corporation purchased a machine on July 1, 20x0 for $750,000. The machine was estimated to have a useful life of 10 years with a salvage value of $46,000. JJ uses the sum-of-years-digits method to depreciate this class of equipment. During 20x3, it became apparent that the machine would become uneconomical to operate after December 31, 20x6, and that the machine would have no salvage value.
What amount should be reported for Depreciation Expense as of December 31, 20x3
I got 281600, not sure if this is correct. Please show work
Year | Depreciation base | Remaining life of machine | Depreciation fraction | depreciation expense |
1 | 704000 | 10 | 10/55* | 128,000 |
2 | 704000 | 9 | 9/55 | 115,200 |
3 | 704000 | 8 | 8/55 | 102,400 |
4 | 704000 | 7 | 7/55 | 89,600 |
5 | 704000 | 6 | 6/55 | 76,800 |
6 | 704000 | 5 | 5/55 | 64,000 |
7 | 704000 | 4 | 4/55 | 51,200 |
8 | 704000 | 3 | 3/55 | 38,400 |
9 | 704000 | 2 | 2/55 | 25,600 |
10 | 704000 | 1 | 1/55 | 12,800 |
JJ Corporation purchased a machine on July 1, 20x0 for $750,000. The machine was estimated to...
JJ Corporation purchased a machine on July 1, 20x0 for $750,000. The machine was estimated to have a useful life of 10 years with a salvage value of $46,000. JJ uses the sum-of-years-digits method to depreciate this class of equipment. During 20x3, it became apparent that the machine would become uneconomical to operate after December 31, 20x6, and that the machine would have no salvage value. What amount should be reported for Depreciation Expense as of December 31, 20x3 for...
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Crane Company purchased a machine on July 1, 2017, for $900000.
The machine has an estimated useful life of five years and a
salvage value of $190000. The machine is being depreciated from the
date of acquisition by the 150% declining-balance method. For the
year ended December 31, 2017, Crane should record depreciation
expense on this machine of
$270000.
$180000.
$135000.
$106500.
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On January 1. 2014. a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100.000 hours before it needs to be replaced. The company closed its books on December 31 of each year. Instructions (a) Compute the annual depreciation charges over the machine' s life assuming a December 31 year-end for each of the following depreciation rnethods. (l) Straight-line method. (2) Sum-of-the-years'-digits method. ....
On January 1, 2018, a machine was purchased for $120,000. The
machine has an estimated salvage value of $9,600 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
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machine has an estimated salvage value of $6,420 and an estimated
useful life of 5 years. The machine can operate for 107,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 21,400 hrs;
2016, 26,750 hrs; 2017, 16,050 hrs; 2018, 32,100 hrs; and 2019,
10,700 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
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