Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. A company purchased a machine for $190.000. The machine has a useful life of 8 produce 750,000 units over its useful life. Determine depreciation

image text in transcribed
8. A company purchased a machine for $190.000. The machine has a useful life of 8 produce 750,000 units over its useful life. Determine depreciation expense when output is 109,000 units A. $25,200. 8. $26,160 . $ 26,660. D. $27,613. E. $53,160 years, a residual value of $10,000, and can deprecilation method in which a plant asset's depreciation depreciation rate to the asset's beginning-of-period book value is called A. Book value depreciation B. Declining-balance depreciation. C. Straight-ine depreciation. D. Units-of-production depreciation. E. Modified accumulated depreciation method . A expense for a period is determined by applying a constant 10. Information on a depreciable asset owned by Wilson Engineering is as follows: Purchasc date January 1, 2008 Purchase price Salvage value Useful life Depreciation mothod 545,000 3 5,000 8 years straigh-line If the asset is sold on July 1, 2012 for $20,000, the journal entry to record the sale will include A A credit to cash for $20,000. 8 A debit to accumulated depreciation for $22,500. C A debit to loss on sale for $10,000. D. A credit to loss on sale for $10,000 E. A debit to gain on sale for $2,500 equipment on Jan 1, 2005 for $48,000. The equipment will have a $6,000 salvage value at the end of its book value of the asset at December 31, 2005. 10-year life. Using the straight-line method of depreciation to determine the A. $4,800 B. $4,200 C. 43,800 D. $3,600 E. None of the above 12. Determine the remaining life of ABC's equipment given the following. Equipment cost $30,000. Estimated salvage value $6, Annual depreciation expense $3,000. Balance in the Accumulated Depreciation account at the end of the year is $9,000. A. 10 years B. 8 years C. 5 years. D. 3 years E. None of the above. 13. Which depreciation method or methods, take the salvage value of the asset into consideration when computing the annual depreciation expense? A. Straight-line. B. Units of Production. C. Declining Balance. D. A and C E. A and B

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

The Practitioners Blueprint To Construction Auditing

Authors: Ron Risner

1st Edition

0894137263, 978-0894137266

More Books

Students also viewed these Accounting questions