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please answer questions completely Nash Company purchases equipment on January 1, Year 1, at a cost of $480,000. The asset is expected to have a
please answer questions completely
Nash Company purchases equipment on January 1, Year 1, at a cost of $480,000. The asset is expected to have a service life of 12 years and a salvage value of $43,200. (a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to O decimal places, es 5,125.) Depreciation for Year 1 $ Depreciation for Year 2 $ Depreciation for Year 3 $ Splish Corporation bought a machine on June 1, 2018, for $38,400, f.o.b. the place of manufacture. Freight to the point where it was set up was $280, and $620 was expended to install it. The machine's useful life was estimated at 10 years, with a salvage value of $3,100. On June 1, 2019, an essential part of the machine is replaced, at a cost of $2.520, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy. On June 1.2022, the company buys a new machine of greater capacity for $43,400, delivered trading in the old machine which has a fair value and trade-in allowance of $24,800. To prepare the old machine for removal from the plant cost $93, and expenditures to install the new one were $1,860. It is estimated that the new machine has a useful life of 10 years, with a salvage value of $4.960 at the end of that time. (The exchange has commercial substance.) Assuming that depreciation is to be computed on the straight-line basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June 1, 2022. (Round answer to decimal places, es, 45,892.) $ Depreciation for the year beginning June 1.2022 Step by Step Solution
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