Question
SolMfg Company purchased a new machine for $400,000 on September 1, 2020 . It is estimated that the machine will have $40,000 residual value at
SolMfg Company purchased a new machine for $400,000 on September 1, 2020. It is estimated that the machine will have $40,000 residual value at the end of its 5-year useful service life.
Please prepare a depreciation schedule that shows the annual depreciation expense on the machine for its 5-year life.
Instructions
- Company is using straight line depreciation method;
Year | Depreciable amount | Rate | Annual Depreciation expense | Accumulated Depreciation | Book Value End of Year | ||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||
2024 | |||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
A StraightLine Depreciation Method Depreciation Rate Purchase Cost Residual Value Estimate useful Li...
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
