Question
At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $28,800 but had to be overhauled (at a
At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $28,800 but had to be overhauled (at a cost of $1,840) before it could be installed (at a cost of $920) and finally put into use. The machinerys total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $430 in each year.
The shelving cost $9,700 and was expected to last 5 years, with a residual value of $680. The forklift cost $14,400 and was expected to last six years, with a residual value of $2,160.
4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.
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