Question
Machinery A B C D Orginal Cost $46000 $51000 $80000 $80000 Years Purchased 2009 2010 2011 2013 Useful Life 10 years 15000 hours 15 years
Machinery
A | B | C | D | |
Orginal Cost | $46000 | $51000 | $80000 | $80000 |
Years Purchased | 2009 | 2010 | 2011 | 2013 |
Useful Life | 10 years | 15000 hours | 15 years | 10 years |
Salvage Value | $ 3,100 | $ 3,000 | $ 5,000 | $ 5,000 |
Depreciation Method | Sum-of-the-years-digits | Activity | Straight-line | Double-declining balance |
Accum. Depre Through 2014 | $31,200 | $35,200 | $15,000 | $16,000 |
*In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Eshkol, Inc. takes a full years depreciation on the asset
The following transactions occurred during 2015.
(a) On May 5, Machine A was sold for $13,000 cash. The companys bookkeeper recorded this retirement in the following manner in the cash receipts journal. Cash 13,000 Machinery (Machine A) 13,000
(b) On December 31, it was determined that Machine B had been used 2,100 hours during 2015.
(c) On December 31, before computing depreciation expense on Machine C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2015, was 10 years.
(d) On December 31, it was discovered that a machine purchased in 2014 had been expensed completely in that year. This machine cost $28,000 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as Machine E.
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