Question
1-Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated
1-Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machine's first-year depreciation under the double-declining-balance method.
2-Victory Company purchases equipment at the beginning of the year at a cost of $15,000. The equipment is depreciated using the straight-line method and has a useful life estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first years depreciation is:
3-Mohr Company purchases a machine at the beginning of the year at a cost of $42,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $4,000 salvage value. Depreciation expense in year 2 is:
4-Mohr Company purchases a machine at the beginning of the year at a cost of $40,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 8 years with a $6,000 salvage value. Depreciation expense in year 2 is:
5-Martin Company purchases a machine at the beginning of the year at a cost of $77,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $3,000 salvage value. Depreciation expense in year 4 is:
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