In each of the following situations, determine the age of each asset in either years or units,
Question:
In each of the following situations, determine the age of each asset in either years or units, whichever is appropriate.
A. Equipment appears on the balance sheet at a cost of $ 28,500 with accumulated depreciation of $ 14,100. The salvage value was estimated at $ 5,000, the useful life was estimated at five years, and the straight- line method of depreciation is used.
B. The cost of the truck is $ 21,800 with $ 17,100 of accumulated depreciation. salvage value was estimated at $ 2,800, and the truck would most likely be driven for 100,000 miles. The company uses the units- of- production method of depreciation.
C. Machinery was purchased for $ 64,500 and, at present, has accumulated depreciation of $ 23,220. The useful life was estimated at 10 years, with a salvage value of $ 9,500. The double- declining-balance method of depreciation is used.
Salvage ValueSalvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines