Question
On March 1, 20X1, Efay Company purchases for $600,000 a machine that Efay estimates will have a useful life of 50,000 machine hours and a
- On March 1, 20X1, Efay Company purchases for $600,000 a machine that Efay estimates will have a useful life of 50,000 machine hours and a salvage value of for $15,000. In Year 1, Efay uses the machine for 11,100 hours; in Year 2, 8,600 hours; in Year 3, 9,100 hours; in Year 4, 12,000 hours; and in Year 5, 13,600.
a. Efay uses UOP depreciation. Complete the table below.
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| Year-beginning | Depreciation | Accumulated | Year-end |
| Year | book value | expense | depreciation | book value |
| 20X1 |
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| 20X2 |
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| 20X3 |
|
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| 20X4 |
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| 20X5 |
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b. Prepare the adjusting journal entry to record 20X1 depreciation expense.
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The Official IRS Tax Guide To Auditing Horse Activities Prepare Your Horse Operation To Withstand An IRS Audit Using The Samw Manual IRS Agents Use
Authors: IRS
1st Edition
092934670X, 978-0929346700
