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ABC Company purchased a piece of equipment on May 1, 2004 for $27,000. The equipment was assigned a $3,000 salvage value and an 8-year life.
ABC Company purchased a piece of equipment on May 1, 2004 for $27,000. The equipment was assigned a $3,000 salvage value and an 8-year life. It is estimated that the equipment will produce a total of 50,000 units over its life. Calculate the book value of the equipment at December 31, 2005 assuming ABC Company will depreciate the equipment using the units-of-production method. Assume the equipment was used to produce 6,500 units during 2004 and 7,200 units during 2005. __________________________________ On June 1, 2002, Duncan Inc. purchased equipment for $65,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $5,000. Assume the company employs the straight-line method of depreciation. Calculate the amount of accumulated depreciation on the equipment shown in the balance sheet at December 31, 2006 _________________ XYZ Company purchased a new machine on January 1, 2003 for $120,000. The machine had an 8-year life and a $5,000 salvage value assigned to it. Calculate the book value of the machine at December 31, 2005 assuming the company will depreciate the machine using the double-declining balance depreciation method. Do not use decimals in your answer. _________________________ XYZ Company purchased a new machine on January 1, 2003 for $122,800. The machine had a 7-year life and a $5,200 salvage value assigned to it. The machine is being depreciated using the sum-of-the-years'-digits depreciation method. If XYZ Company sold the machine on December 31, 2005 for $30,000, calculate the loss on the sale recorded by XYZ Company. Do not use a minus sign or decimals in your answer. Additionally, do not type the word loss after your answer. _____________ On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 10 years and a residual value of $10,000. On January 1, 2005, ABC Company decided the life of the equipment should be revised from 10 to 15 years. Calculate the depreciation expense recorded on the equipment for 2005 assuming ABC Company uses the straight line depreciation method. Do not use decimals in your
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