Question
1a. When originally purchased, a vehicle had an estimated useful life of 10 years. The vehicle cost $53,000 and its estimated residual value is $3,000.
1a. When originally purchased, a vehicle had an estimated useful life of 10 years. The vehicle cost $53,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the assets total estimated useful life was revised from 10 years to 5 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:
1b. Pebble Beach Co. buys a piece of equipment for $57,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipments useful life? (Do not round intermediate calculations.)
1c. A machine is purchased on January 1, 2018, for $96,000. It is expected to have a useful life of five years and a residual value of $8,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2019?
1d. Marshall Company purchases a machine for $840,000. The machine has an estimated residual value of $80,000. The company expects the machine to produce four million units. The machine is used to make 620,000 units during the current period. If the units-of-production method is used, the depreciation expense for this period is:
1e. A company purchased land for its natural resources at a cost of $1,560,000. It expects to mine 2,150,000 tons of ore from this land. The residual value of the land is estimated to be $340,000. What is the amount of depletion per ton of ore?
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