Question
On January 1, 2011, the Allegheny Corporation purchased machinery for $115,000 and put it in service. The estimated service life of the machinery is 10
On January 1, 2011, the Allegheny Corporation purchased machinery for $115,000 and put it in service. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.
16. Assume that the Allegheny Corporation uses the sum-of-the-years-digit method and the machinery is put in service on July 1, 2011, how much is the depreciation expense that the Allegheny Corporation should recognize in 2012?
A. $17,000
B. $18,000
C. $20,000
D. None of the above answers is correct.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
