1. 2. 3.

A machine that cost $500,000 has an estimated residual value of $25,000 and an estimated useful life of five years. The company uses straight-line depreciation. Calculate its book value at the end of year 4. (Do not round intermediate calculations.) Book Value $ Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) ri $ 200,000 62,000 During the first week of January 2018, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 2,450 27,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $14,000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and + for increase and for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2017 2. The two expenditures for repairs and maintenance during January 2018, Item Assets Liabilities Stockholders' Equity 2017 2018 Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $75,000 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 and the company uses (a) straight-line, (b) double- declining-balance, or (C) units-of-production depreciation. (Do not round intermediate calculations.) Depreciation (a) (b) (c) Straight-Line Double-Declining-Balance Units-of-Production