Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started