Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

> On January 1, 2019, Woodstock, Inc. purchased a machine costing $40.000. Woodstock ) also paid $1,000 for transportation and installation. The expected useful life

image text in transcribed
> On January 1, 2019, Woodstock, Inc. purchased a machine costing $40.000. Woodstock ) also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000. 40,000 - 5,000 : 6 years How much is the annual depreciation expense, assuming use of the straight-line depreciation method? A) $5,950. B) $5,750. C) $6,100. D) $6,000 Warren Company plans to depreciate a new building using the double declining-balance 6) depreciation method. The building cost is $800,000. The estimated residual value of the building is $50,000 and it has an expected useful life of 25 years. 800,000 50,000 25 yrs. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year? 809200 X 125 = A) $30,720. B) $58,880. C) $32,000.00 D) 564,000. 800,000 -84) 2125 = 7) On January 1, 2019, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 6-year life and a $4,000 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that vehicle will be driven 100,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,000 miles during 2019 and driven 18,000 miles during 2020? A) $28,800. B) $25,920. C) $29,920. D) $24,800. 8) 8) A company has some bottling equipment which cost $8.5 million, has a net book value of $4.1 million, estimated future cash flows of $3.7 million, and a fair value of $3.1 million. How much is the asset impairment loss? A) $0.4 million. B) $1.0 million. C) $4.1 million. D) $5.4 million 9) 9) On December 31, 2019, Hamilton Inc, sold a used industrial crane for $600,000 cash. The original cost of the crane was $5.0 million and its accumulated depreciation equaled $4.2 million on December 31, 2019. What is the gain or loss from the December 31, 2019 equipment sale? A) $600,000 gain. B) $200,000 loss. C) $200,000 gain. D) $600,000 loss

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

Fundamentals Of Managerial Accounting Version 3.0

Authors: Kurt Heisinger, Joe Ben Hoyle

1st Edition

1453399410, 9781453399415

More Books

Students also viewed these Accounting questions

Question

5. Explain how ERISA protects employees pension rights.

Answered: 1 week ago

Question

8. Describe the main retirement benefits.pg 87

Answered: 1 week ago