The FraserRiver Company has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation methods: straight-line, double-declining-balance, and units-of-production The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 hours. At the end of four years, the equipment is estimated to have a residual value of $20,000. Requirements...
A piece of equipment was acquired on January 1, 2018, at a cost of $22,000, with an estimated residual value of $2,000 and an estimated useful life of Four years. The company uses the double-declining-balance method. What is its book value at December 31, 2019? A. $12,000 B. $10,000 C. $11,000 D. $5,500
On January 1, 2021, Maywood Hydraulics leased drilling equipment
from Aqua Leasing for a three-year period ending December 31, 2024,
at which time possession of the leased asset will revert back to
Aqua. The equipment cost Aqua $423,414 and has an expected economic
life of four years. Aqua expects the residual value at December 31,
2024, to be $60,000. Negotiations...
Units-of-activity Depreciation A truck acquired at a cost of $420,000 has an estimated residual value of $21,750, has an estimated useful life of 59,000 miles, and was driven 5,300 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $ (b) The depreciation rate $ per...
Use the following information for questions 21 through 24. On January 2, 2018, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2019. Expenditures for the construction were as follows: January 2, 2018 £200,000 September 1, 2018 600,000 December 31, 2018 600,000 March 31, 2019 600,000...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $162,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 350,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $43,000 on October 1. The equipment has an estimated residual value of $3,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hours from October 1 to December 31...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $129,270, has an estimated useful life of 14 years, has an estimated residual value of $9,850, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? Feedback Check My Work...
Starboard Industries enters into a lease agreement with Bumble Motors to lease an automobile with a fair value of $73,000 under a 5- year lease on December 20, 2018. The lease commences on January 1, 2019, and Starboard will return the automobile to Bumble on December 31, 2023. The automobile has an estimated useful life of 7 years. Starboard made...
33. ABC Company purchased equipment on January 1, 2009 for $72,000. It was estimated that the equipment would have a $5,000 salvage value at the end of its 5-year useful life. It was also estimated that the equipment would produce 100,000 units over its 5-year life. If the company used the double-declining balance method of depreciation, what was the balance...