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12. Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery
12. Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances:
Manufacturing equipment | $ | 445,000 |
Accumulated depreciation through 2015 | 243,600 | |
During 2016, the following expenditures were incurred for the equipment:
Routine maintenance and repairs on the equipment | $ | 9,000 |
Major overhaul of the equipment that improved efficiency on January 2, 2016 | 58,000 | |
The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $39,000 estimated residual value. The annual accounting period ends on December 31.
The following information applies to the questions displayed below. Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances: Manufacturing equlpment Accumulated depreciation through 2015 $ 445,000 243,600 During 2016, the following expenditures were incurred for the equipment Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency on January 2, 2016 $ 9,000 58,000 39,000 estimated residual value. The annual accounting period ends on December 31. The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $Step by Step Solution
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