Purchase Solution

Depreciation

Not what you're looking for?

Ask Custom Question

Machinery is purchased on july 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or 20,000 operating hurs, and a risidual value of $20,000. Compute the depreciation for the last six months of the current fiscal year ending December 31 by each of the following methods:

(a) straight-line
(b) declining-balance at twice the straight-line rate
(c) units-of-production (used for 1,500 hours during the current year)

(Round to the nearest dollar)

Purchase this Solution
Solution Summary

This provides the steps to calculate the depreciation

Solution Preview

Machinery is purchased on july 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Capital Expenditure for Tertiary Care Hospital

    SL METHOD Depreciation for 2009 Depreciation for 2010 Depreciation for 2011 Depreciation for 2012 Depreciation for 2013 Depreciation for 2014 Depreciation for 2015 Depreciation for 2016 TOTAL DEPRECIATION

  • Depreciation

    the depreciation using the straight-line method of depreciation, the units-of-production method of depreciation and the double-declining balance method of depreciation.

  • Fair Weather Friend Corporation

    Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation Cash flow b. How much would cash flow be if there were only $10,000 in depreciation?

  • Calculate depreciation in four different methods

    years (actual 0.50667) Depreciation = Depreciation per yard X yards produced Depreciation for 2011 = 0.50667 X 49,500 = $25,080 3) Service hours In service hours, we calculate depreciation per hour as Depreciation per hour = (Cost - Salvage

  • Frederick Industries changed from the double-declining balan

    Income before depreciation expense 2010$ 2009$ Depreciation expense 2010$ 2009$ Net income 2010$ 2009$

  • Straight Line, Unit of Production and Double Declining

    life of an asset in years Calculation of annual Depreciation 22400-2400 5 years Annual depreciation $4,000 Rate of Depreciation 100%/Useful life 100/5=20% Depreciation for 2013 $4,000 Depreciation for 2014 $4,000

  • Short answer: Depreciation v. accumulated depreciation

    240159 Short answer: Depreciation v. accumulated depreciation What is meant by the terms "depreciation" and "accumulated depreciation"? What financial statement does each of these items appear in? This can be short answer.

  • Calculation using different depreciation methods

    Straight Line Depreciation Depreciable Value 93,000 Depreciation per year 15,500 Depreciation Expense for 4 years 62,000 2.

  • Book Value and Depreciation

    Depreciation Schedule B was calculated using: Straight Line Depreciation Sum of Years Digits Depreciation(SYOD) Double Declining Balance Depreciation (DDB) MACRS Depreciation Unit of Production Depreciation

  • Financial Management

    The straight line depreciation rate is 25% (100% / 4 years). To calculate depreciation from double declining balance method, the depreciation rate will be double the straight line depreciation rate i.e. 50% (Eisen, 2003).

View More Related Solutions