Purchase Solution

Depreciation Expense

Not what you're looking for?

Ask Custom Question

On January 1, 2003, Eiger Company purchased a new piece of machinery. The machine cost $200,000. Optional equipment for the machine was also purchased at a cost of $14,000. The manufacturer charged 1,400 to install the option. The estimated life of the machine was 7 years and the estimated service life of the machine in hours was 21,000. The estimated salvage value of the machine was $4,000. The machine was used for 2,700 hours in 2005.

Compute depreciation expense for 2005 under each of the following methods:

A) Straight-Line
B) Double Declining Balance
C) Sum Of The Years Digits
D) Service Hours
E) MACRS (Using The Following Rates):

YEAR 1 14.29%
YEAR 2 24.49%
YEAR 3 17.49%
YEAR 4 12.49%
YEAR 5 8.93%
YEAR 6 8.92%
YEAR 7 8.93%
YEAR 8 4.46%

Purchase this Solution
Solution Summary

The solution calculates the Depreciation Expense under Straight-Line, Double Declining Balance, Sum Of The Years Digits, Service Hours and MACRS methods.

Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

View More Free Quizzes
Related BrainMass Solutions

  • Frederick Industries changed from the double-declining balan

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

  • Julien Hotel

    ) 3 Depreciation Expense?

  • Adjusting Entries

    15,000 Admissions revenue 305,200 Concessions revenue 14,350 Salaries expense 68,500 Film rental expense 94,500 Utilities expense 9,500 Depreciation expense: building 4,900 Depreciation expense: fixtures and equipment

  • Error in accounting

    XXX (The amount depends on what depreciation method is used and when the error is discovered) Retained earnings (Plug) To record the depreciation expense, Depreciation expense XXX Accumulated depreciation XXX For example

  • Lasar Technology, Inc.: calculating the value of depreciation expense and computing a partial Income Statement

    Move Depreciation Expense to the left-hand side of the equation to get: 90,000 + (Depreciation Expense) = 320,000 - 70,000 Now move the 90,000 to the right-hand side: (Depreciation Expense) = 320,000 - 70,000 - 90,000 So now we simply perform

  • Jupiter Corporation and Saturn Corporation

    173517 The Jupiter Corporation has a gross profit of $700,000 and $240,000 in depreciation expense. The Jupiter Corporation has a gross profit of $700,000 and $240,000 in depreciation expense.

  • Depreciation

    Compute the depreciation expense for 2008.

  • Change in Estimate-Depreciation

    Description Depreciation Expense $ Accumulated Depreciation-Plant Assets $ (b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2009 and 2010.

  • Depreciation Expenses calculation for the Houston Company

    Depreciation Expense under Straight Line Method = (200,000 - 0)/10 = 20,000 per year Depreciation Expense (20,000 x 2/12) 3,333 Accumulated Depreciation 3,333 d.

  • depreciation expense: declining-balance

    Depreciation expense = Accumulated depreciation = b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life. Depreciation expense c.

View More Related Solutions