Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7 (6 marks) On January 1, 2021, a company buys new machinery for $30,000. The machinery is expected to have a useful life of 100,000

7 (6 marks) On January 1, 2021, a company buys new machinery for $30,000. The machinery is expected to have a useful life of 100,000 hours and a salvage value of $5,000. During the first year of operations the machinery is used for 3,200 hours. The company calculates annual depreciation as $800. 5 years later (January 1, 2026), the company sells the machinery for $13,000. At the time of the sale, the accumulate depreciations was $12,000. The company has a December 31st year end. Required 1. What is the expected value of the machinery by the end of its life? 2. How much will be depreciated by the end of the machinery's life? 3. Report a partial balance sheet and income statement for December 31, 2021. 4. Calculate the net book value and gain or loss when the machinery was sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Strayer University

Authors: Strayer University

3rd Custom Edition

0077234804, 978-0077234805

More Books

Students also viewed these Accounting questions

Question

Draw and explain the operation of LVDT for pressure measurement

Answered: 1 week ago