At the beginning of 2022, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of
Question:
At the beginning of 2022, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2024, the estimates of useful life and residual
value were changed to 20 total years and $500,000, respectively. What is depreciation on the building for 2024?
Step by Step Answer:
Calculation of annual depreciation after the estimate change 9000000 Cost 320000 Prev...View the full answer
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was...
-
At the beginning of 2009, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2009 and 2010 was...
-
At the beginning of 2011, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2011 and 2012 was...
-
You are given the equation(s) used to solve a problem. For each of these, you are to a. Write a realistic problem for which this is the correct equation(s). b. Finish the solution of the problem.
-
A community hospital wants to estimate the body mass index (BMI) of its local population. To estimate the BMI with an error of at most 1.0 at a 95% confidence level, what sample size should they use?...
-
Find an ODE y" + ay' + by = 0 for the given basis. e -3.1x cos 2.1x, e -3.1x sin 2.1x
-
2. Interest income that should appear in the 2016 consolidated income statement for Pangs bond issue is: a $14,000 b $10,400 c $10,000 d None of the above
-
Lawrence loaned money to Moore, who died without repaying the loan. Lawrence claimed that when he mentioned the matter to Moores widow, she promised to pay the debt. She did not pay it, and Lawrence...
-
Holdup Bank has an issue of preferred stock with a $5.55 stated dividend that just sold for $92 per share. What is the banks cost of preferred stock? (Do not round intermediate calculations. Enter...
-
"In reviewing your previous reports, several questions came to Elizabeth Burkes mind. Use point and interval estimates to help answer these questions. 1. What proportion of customers rate the company...
-
Imani West, CEO of West Industries, stopped by the companys finance department with a question. I am considering having West Industries purchase bonds of Triton Corporation as an investment. Our...
-
Early in 2024, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2024 at a cost of $6 million. Of this amount, $4 million was spent...
-
Consider the nozzle of Problem 16.47 and determine what back pressure will cause a normal shock to stand in the exit plane of the nozzle. This is case g in Fig. 16.17. What is the mass flow rate...
-
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as...
-
according to the phase rule, the triple point of a pure substance is A. invariant B. u nivariant C. bivariant D. none of the above
-
33. If the equipment in the previous question had sold for $15,000, the correct entry would be: a. Cash debit $15,000. Gain credit $3,000. $12,000 Equipment credit b. Cash debit $15,000. Debit a loss...
-
The banks play a central role in financial intermediation in New Zealand. 1.What is financial intermediation? Who performs it? and why is it important? 2.What is Qualitative Asset transformation...
-
Consider the following information attributed to the material management department Budgeted usage of materials - handling labor - hours 3,700 Budgeted cost pools: Fixed costs $166,500 Variable costs...
-
If a business plan is to be used to raise capital, then why would the entrepreneur want to advertise the firms major risks by detailing them in the business plan?
-
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study the statement of...
-
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wrights accounting records is provided also....
-
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for National Intercable Company. Additional information from NICs accounting records is provided...
-
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 3 1 , 2 0 2 0 : Transactions during 2 0 2 1 were as follows: a . On January 2 , 2 0 2...
-
All else equal, a company's P/E ratio will ____________ when the discount rate ___________. rise, rise fall, rise fall, falls cannot be determined All else equal, a company's P/E ratio will _____...
-
The cost of partially completed goods at the end of the period would be Ending work in process inventory Cost of goods sold Beginning finished goods inventory Beginning work in process inventory
Study smarter with the SolutionInn App