Question
WILSON CO Wilson Co. purchased a machine for $600.000. Wilson paid $60.000 for installation and testing. Goods produced in testing process sold for $5.400.
WILSON CO Wilson Co. purchased a machine for $600.000. Wilson paid $60.000 for installation and testing. Goods produced in testing process sold for $5.400. Fees of $3.480 were paid for custom transactions. Transportation costs was paid by Wilson amounted $2.600. Interest costs during purchase were $1.700. Required: Determine the cost of the machine. AZTEK COMPANY Aztek Company purchased a truck on January 2, 2017 for $90,000 for cash. It was estimated that it had an estimated useful life of 5 years and the residual value was $10,000 at the end of its useful life. The estimated usage of the truck in terms of mileage was as follows: 1. year 96,000 miles 2. year 94,000 miles 3. year 92,000 miles 4. year 88,000 miles 5. year TOTAL 80,000 miles 450,000 miles Required: 1) Calculate annual depreciation throughout the 5 years, if the company uses; a) straight-line method of depreciation. b) double declining method of depreciation c) units of activity method of depreciation 2) ASSUME that the machine was purchased on July 1, 2017. What would be the depreciation expense for the year 2017 under straight-line method of depreciation and double declining method of depreciation?
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