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# Depreciation

### Depreciation using reducing balance

I have a question in a text book and not sure how they worked the answer out, I seem to get the incorrect answer when doing the example, unless the text is wrong...which could be possible. Please show workings and explain. Question relates to J blog, public accountant, for 6 months ending 31 December 2018 Trial Balance a

### Depreciation

Markov Manufacturing recently spent \$15 million dollars to purchase some equipment used in the manufacture of disk drives. The firm expects this equipment will have a useful life of five years, and its marginal corporate tax rate is 35%. The company plans to use straight-line depreciation. a) What is the annual deprecation ex

### What is the amount of the annual depreciation computed by the straight-line method?

A refrigerator used by a meat processor has a cost of \$93,750, an estimated residual value of \$10,000, and an estimated useful life of 25 years. What is the amount of the annual depreciation computed by the straight-line method?

### depreciation deductions

Rona Inc is a developer. During the year, the corporation finished construction of a complex containing a new shopping mall and office building. To enhance the environment of the complex, substantial landscaping was done including the planting of many trees, shrubs and gardens. In addition, Rona Inc acquired a massive sculpture

### Wilson Corporation began operations in January 2008, and purchased a machine for \$20,000. Wilson uses straight-line depreciation over a four-year period for financial reporting purposes.

Wilson Corporation began operations in January 2008, and purchased a machine for \$20,000. Wilson uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2008, 30% in 2009, and 20% in 2010. Pretax accounting income for 2008 was \$150,000, which inc

### Recently, Broderick Company experienced a strike that affected a number of its operating plants. The controller of this company indicated that it was not appropriate to report depreciation expense during this period because the equipment did not depreciate and an improper matching of costs and revenues would result. She based her position on the following points.

Recently, Broderick Company experienced a strike that affected a number of its operating plants. The controller of this company indicated that it was not appropriat

### Depreciation

BE11-2 Lockard Company purchased machinery on January 1, 2010, for \$8,000 after a useful life of 8 years. (a) Compute 2010 depreciation expense using the straight-line method. (b) Compute 2010 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2010. BE11-3 Use the informatio

### E 11-10 11-5 Depreciation methods: straight-line, double-declining-balance, and sum-of-the-years' digits method; switch to straight line.

See attached for additional details: E11 - 5 Depreciation methods For each of the following depreciable assets, determine the missing amount (?). Abbreviations for depreciation methods are SL for straight line, SYD for sum-of-the-years' digits, and DDB for double-declining balance. E 11-10 Double-declining-balance meth

### Depreciation, impairment, depletion, and accounting for franchise, patents, and trade names.

E11-18 (Impairment) The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of \$900,000 with depreciation to date of \$400,000 as of December 31, 2007. On December 31, 2007, managem

### P10-3A Depreciation Under Different Methods for Pele Company

P10-3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was \$38,000. Related expenditures included: sales tax \$1,700, shipping costs \$150, insurance during shipping \$80, installation and testing costs \$70, and \$100 of oil and

### Smart Hardware Depreciation and Print Technologies Asset

See the attachment. Must be done in Excel, the Excel Template 9.3A is attached for the problem. Case 9.1 Mickey Gillespie is the controller of Print Technologies, a publicly owned company. The company is experiencing financial difficulties and is aggressively looking for ways to cut costs. Susan Bedell, the CEO, instruc

### Depreciation Expenses

On July 1, Year 1, an entity that uses IFRS acquired equipment with a cost of \$84,000 and an estimated life of 12 years. The cost of the machine included the \$9000 cost of a component that must be replaced every 6 years and an initial inspection of fee of \$3000. The equipment must be re-inspected every 3 years at an additional c

### Depreciation calculation methods. Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year.

Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost \$26,000 and has an estimated useful life of four years and an estimated salvage value of \$4,000. a. Calculate depreciation expense for each year of the truck's life using: 1. Straight-line depreciation. 2. Double-declining-

### ACCOUNTING

1. A company had inventory of 5 units at a cost of \$20 each on November 1. On November 2, it purchased 10 units at \$22 each. On November 6 it purchased 6 units at \$25 each. On November 8, it sold 18 units for \$54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold? A. \$395. B. \$410

### Straight Line Revised Depreciation for Building and Warehouse with Different Purchase Dates

Jack Reese, the new controller of Muckenthaler Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2010. Here are his findings: ***I left out the warehouse in hopes I could figure that out on my own. If the building was acquired on Jan 1 2002, cost 941,660, h

### Compute Depreciation with SL and DDB Methods

Lone Star Sales & Service acquired a new machine that cost \$42,000 in early 2008. The machine is expected to have a five-year useful life and is estimated to have a salvage value of \$7,000 at the end of its life. (Round your final answers to the nearest dollar). (a) Using the straight-line depreciation method, calculate the

### Purpose of and method of depreciation for partial years.

Explain the purpose of and method of depreciation for partial years.

### Which depreciation method should we use?

Atwater Manufacturing Company purchased a new machine especially built to perform one particular function on the assembly line. A difference of opinion has arisen as to the method of depreciation to be used in connection with this machine. Three methods are now being considered. (a) The straight-line method (b) The pro

### Calculate depreciation in four different methods

Limestone Construction purchased a concrete mixer on July 15, 2011. Company officials revealed the following information regarding this asset and its acquisition: Purchase price....................\$210,000 Residual value...................................\$20,000 Estimated useful life...................................9

### Compute Depreciation for Three Periods for Three Methods

Apollo Company purchases equipment on January 1, Year 1 at a cost of \$650,000. The asset is expected to have a service life of 10 years and a salvage value of \$10,000. a.) Compute the amount of depreciation of each of Year 1 through 3 using the straight-line method. b.) Compute using the sum-of the digits method. c.) C

### Adjusting an Entry for Accumulated Depreciation

Adjusting Entries: Accumulated depreciation-equipment at 1/1/10 was \$230,000. At 12/31/10 the balance of the account was \$380,000. During 2010, one piece of equipment was sold. The equipment had an original cost of \$40,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry w

### Calculate Depreciation using 2 methods for 2010, 2011 for machine costing \$200,000

A machine which cost \$200,000 is acquired on October 1, 2010. Its estimated salvage value is \$20,000 and its expected life is eight years. Instructions Calculate depreciation expense for 2010 and 2011 by each of the following methods, showing the figures used. (a) Double-declining balance (b) Sum-of-the-years'-digits

### Total Cost Recovery and Depreciation for Greta and Julia

Greta, a calendar-year taxpayer, acquires 5-year tangible personal property in 2009 and places the property in service on the following schedule: Date placed in service Acquisition Cost January 15 \$ 80,000 May 25 \$300,000 November 8

### Depreciation of new truck

BE11-1 Fernandez Corporation purchased a truck at the beginning of 2010 for \$50,000. The truck is estimated to have a salvage value of \$2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in 2010 and 31,000 miles in 2011, compute depreciation expense for 2010 and 2011.

### Depreciation Methods: Units or groups having a composite life

The certified public accountant is frequently called upon by management for advice regarding methods of computing depreciation. Of comparable importance, although it arises less frequently, is the question of whether the depreciation method should be based on consideration of the assets as units, as a group, or as having a comp

### Multiple choice: sunk cost, externality, cannibalization, depreciation, relevant cost

1. Which of the following statements is CORRECT? a. A sunk cost is any cost that must be expended in order to complete a project and bring it into operation. b. A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project. c. A sunk cost is a

### Explain the conventional concept and merits of depreciation: asset value, expense

Depreciation continues to be one of the most important areas in accounting. Explain the conventional concept of depreciation accounting. Discuss its conceptual merits with respect to: The Value of the asset. The charge(s) to expense. The discretion of management in selecting the method

### I10-29 Sec. 179 Expensing and MACRS Depreciation

I10-29 Sec. 179 Expensing and MACRS Depreciation. Ted is in the rental real estate business. During 2009, Ted purchased and placed in service the following assets: * Apartment building costing \$300,000 (exclusive of \$80,000 land): Placed in service on May 12 with a 27.5-year MACRS recovery period. * Office furnitu

### Is Depreciation the loss in value of a fixed asset over a given span of time?

Depreciation is the loss in value of a fixed asset over a given span of time. Agree or disagree? Why?

### On Jan1, 2010 Pele co. purchased two machines for production process.

Accounting Principles 9th edition, ISBN 978-0470-31754-9, Weygandt Problem 10-3A but you need to do ONLY requirement B of the problem. On Jan1, 2010 Pele co. purchased two machines for production process. Machine A: Cash price was \$38,000. Related expenditures include: sales tax \$1700, shipping \$150, shipping insurance