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Vince's Woodworking - Accounting

1.
Vince's Woodworking purchased a wood lathe on January 1, 20X3, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Vince's uses straight-line depreciation. At December 31, 20X5, before recording depreciation expense for 20X5, Vince estimated the lathe to have a remaining life of three years with no residual value. For the year ended December 31, 20X5, Vince would report depreciation expense of:

Options are:

$9,400
$9,000
$14,100
$6,750

9. Material restructuring costs are reported as an element of income from continuing operations

True
False

10.
Gains, but not losses, from discontinued operations may be separately reported in an income statement.

True
False

Solution Preview

1.
Vince's Woodworking purchased a wood lathe on January 1, 20X3, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Vince's uses straight-line depreciation. At December 31, 20X5, before recording depreciation expense for 20X5, Vince estimated the lathe to have a ...

Solution Summary

This solution is comprised of a detailed explanation to answer 3 short & objectives accounting questions.

$2.19