15. On May 1, 20X1, your company purchases a machine for $260,000 with an estimated useful life...
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15. On May 1, 20X1, your company purchases a machine for $260,000 with an estimated useful life of 12 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1st and 15thof the month for the entire month; assets purchased after the 15thof the month are treatedas though they were acquired the following month. What is 20X2 depreciation expense?
18.On May 1, 20X1, your company, which uses UOP depreciation, purchases a machine for $260,000. You estimate the machine will havea useful life of 2,520,000 units and a residual value of $10,000. In 20X1, the machine produces 100,000 units; in 20X2, it produces120,000 units. What is the balance in Accumulated Depreciation at the end of 20X2?
19. On January 1, 20X1, ZipCo, which uses UOP depreciation, purchasesa truck for $24,000 with an estimated useful life of 100,000 miles and a residual value of $4,000. Miles driven are as follows:
| Year | Miles |
| 20X1 | 20,000 |
| 20X2 | 15,000 |
| 20X3 | 10,000 |
| 20X4 | 25,000 |
| 20X5 | 30,000 |
Depreciation expense for the truck is 20X1 is:
20. On January 2, 20X1, Georgia Inc., which uses UOP depreciation, purchasesa machine for $16,000; the company estimates that the machinewill havea useful life of 15,000 machine hours and a salvage value of $1,000. You are given the following usage data: 20X1 3,000 hours 20X2 2,200 hours 20X3 6,170 hours 20X4 5,300 hours Depreciation expense on the machine for 20X4 is:
21. For assets acquired during the year (i.e. not on January 1), the Units of Production method requires that depreciation is recorded for only a portion of the first year. To do this, the first year depreciation amount is prorated to reflect the amount of time that the asset was actually owned by the company (i.e. number of days or number of months).
22. On February 28, 20X1, your company purchases a machine for $150,000 with an estimated useful life of last 10 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1stand 15thof the month for the entire month; assets purchased after the 15thof the month are treated as though they were acquired the following month. What is 20X1 depreciation expense?
24. On July 1, 20X1, ZipCo, which uses UOP depreciation, purchasesa truck for $36,000 with an estimated useful life of 60,000 miles and a residual value of $6,000. Miles driven are as follows:
| Year | Miles |
| 20X1 | 5,000 |
| 20X2 | 10,000 |
| 20X3 | 20,000 |
| 20X4 | 25,000 |
| 20X5 | 30,000 |
The book value of the truck on December 31, 20X3 is:
25. ABC Company purchased equipment on January 1 with an original cost of $50,000. Its estimated useful life is 5 years or 180,000 hours and the residual value is $5,000. Usage of the machine for each year is as follows:
| Year 1 | 42,000 hours |
| Year 2 | 37,500 hours |
| Year 3 | 39,000 hours |
| Year 4 | 43,200 hours |
| Year 5 | 31,000 hours |
Calculate depreciation for the first year using the Units of Production Method.
26. On July 1, 20X1, Georgia Inc., which uses UOP depreciation, purchasesa machine for $16,000; the company estimates that the machinewill havea useful life of 15,000 machine hours and a salvage value of $1,000. You are given the following usage data: 20X1 3,000 hours 20X2 2,200 hours 20X3 6,170 hours 20X4 5,300 hours Depreciation expense on the machine for 20X1 is:
27. On July 11, 20X1, your firm purchases a machine for $125,000 with an estimated useful life of 8 years and a salvage value of $5,000. Your firm uses SYD depreciation and depreciates assets purchased between the 1st and 15thof the month for the entire month; assets purchased after the 15th of the month are treatedas though they were acquired the following month. What is 20X1 depreciation expense?
28. ABC Company purchased equipment on January 1 with an original cost of $50,000. Its estimated useful life is 5 years or 180,000 hours and the residual value is $5,000. Usage of the machine for each year is as follows:
Year 1 | 42,000 hours |
Year 2 | 37,500 hours |
Year 3 | 39,000 hours |
Year 4 | 43,200 hours |
Year 5 | 31,000 hours |
Calculate depreciation for the first year using the Double Declining Balance Method.
29. On January 22, 20X1, your company purchases a machine for $200,000. Your company uses 150% DB depreciation. Assets purchased between the 1st and 15th of the monthare depreciated for the entire month; assets purchased after the 15th of the month are treatedas though acquired the following month. Management estimates the machine will last 10 years and have a salvage value of $60,000. What is 20X1 depreciation expense?
30. On January 1, 20X1, your company purchases for $450,000 a machine with an estimated useful life of 7 years and a salvage value of $40,000. Using SYD depreciation, what is 20X4 depreciation expense?
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