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# Depreciation

### Expensing Election and MACRS Depreciation

Thad acquires a machine at a cost of \$502,000 for use in his business and places it in service on April 1, 2009. The machine is depreciated under MACRS, with a 7-year recovery period. This machine was his only asset acquistion of the year. Thad elects to expense \$250,000 of the acquistion cost under Sec. 179 but elects out of

### Depreciation calculation methods

Depreciation calculation methods. Kleener Co. acquired a new delivery truck at the beginninng of its current fiscal year. The truck cost \$52,000 and has an estimated useful life of four years and an estimated salvage value of \$8,000. A. Calculate depreciation expense for each year of the truck's life using: 1. Straig

### Identify depreciation methods

Moyle Co. acquired a machine on January 1, 2008, at a cost of \$320,000. The machine is expected to have a five-year useful life, with a salvage value of \$20,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual production was as follows: 60,000 units in 2008, 40,000 units in 2009, 80,000 units

### Depreciation methods for Jeeter Industries

Hello, I need your help with this...Please put in excel.Thank you. Please see the attached file. Jeeter industries presents you with the following information. Description Date Purchased Cost Salvage Value Life in Years Depreciation Method Accumulated Depreciation to 12/31/10

### Straight Line Method Depreciation: Cheetah Company

Cheetah Company purchased machinery on January 1, 2004, for \$60,000. The machinery is estimated to have a salvage value of \$6,000 after a useful life of 8 years. (a) Compute 2004 depreciation expense using the straight-line method. (b) Compute 2004 depreciation expense using the straight-line method assuming the machinery

### Estimating goodwill and Depreciation Methods

E 9-4 On January 2, 2005, Jansing Corporation acquired a new machine with an estimated useful life of 5 years. The cost of the equipment was \$40,000 with a residual value of \$5,000. a. Prepare a complete depreciation table under the three depreciation methods listed below. Use a format similar to the illustrations in Exhibit

### Preparing an Entry for Depreciation

Machinery purchased for \$60,000 by Tom Brady Co. in 2003 was originally estimated to have a life of 8 years with a salvage value of \$4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2008, it is determined that the total estimated life should be 10 years with a salvage value of \$4,500 at

### Depreciation

Attention: The equipment will be depreciated by the straight line method over the life of the project. The support is the answer from a book but the depreciation is not a straight line. I do not have time to it now. It can be a guide in case it be needed. Allied Food Products is considering expanding into the fruit jui

### Sum of Digit & Declining Balance Method

50. On January 1, 2011, Carson Company purchased equipment at a cost of \$570,000. The equipment was estimated to have a useful life of five years and a salvage value of \$60,000. Carson uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2013? a. \$340,000 b. \$408

### Compute depreciation using three methods for a \$320,000 machine

A machine costing \$320,000 with a four-year life and an estimated \$33,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 512,500 units of product during its life. It actually produces the following units: year 1, 127,500; year 2, 129,000; year 3, 128,50

### Property, plant and equipment

Which of the following statements about property, plant and equipment and depreciatin is true? a. Plant, property and equipment assets are sold to customers in the normal course of business. b. Accounting requires that the cost of a depreciable asset be recorded as an expense over time periods benefirted by the asset.

### Taxation: Compute casualty loss, employee business expenses, depreciation, gain

A flood damaged an auto owned by Mr. and Mrs. South on June 15, this year. Fair market value before the flood \$8,500 Fair market value after the flood 2,000 Cost basis 10,000 Insurance proceeds 3,000 Adjusted gross income for this year 25,000 Business use of auto 0 Based on these fact

### Effects of straight-line versus double declining-balance depreciation

Same Day Laundry Services purchased a new steam press January 1, for \$35,000. It is expected to have a five-year useful life and a \$3,000 salvage value. Same Day expects to use the steam more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming th

### Gerald Englehart Industries: Change in Estimate

Change in Estimate?Depreciation) Gerald Englehart Industries changed from the doubledeclining balance to the straight-line method in 2008 on all its plant assets. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2005, had an original cost of \$1,600,000, with a \$100,000 salva

### Unit-of-Production Method

A machine cost \$40,000,has a salvage value of \$8,000 and is expected to have a useful life of 100,000 hours.if it is utilized for a total of 8,000 hours in year one,what is the depreciation expense based on the unit-of-production-method at the end of the year?

### Calculation of interest expense & depreciation

If a company has an operating income of \$700,000, net income of \$200,000 and net cash flow after taxes of \$450,000 and is in the 50% tax bracket, what combination of interest expense and depreciation expense would the company have?

### Capital Expenditure for Tertiary Care Hospital

See the attached file. You are the CFO of a 720-bed tertiary care hospital. You have been presented with a capital expenditure request for a state-of-the-art MRI machine to be purchased on 01-01-09 for a cost of \$1,250,000 with a useful life of 6 years and an expected salvage value of \$35,000. Calculate depreciation fo

### Depreciation SL, SYD, and DDB methods

You are the CFO of a 720-bed tertiary care hospital. You have been presented with a capital expenditure request for a state-of-the-art MRI machine to be purchased on 01-01-09 for a cost of \$1,250,000 with a useful life of 6 years and an expected salvage value of \$35,000. Calculate depreciation for the entire 6 year

### Bickner Company: Depreciation Methods

Bickner Company changed depreciation methods in 2008 from double-declining-balance to straight-line. Depreciation under double-declining-balance was \$90,000, whereas straight-line depreciation prior to 2008 would have been \$50,000. Bickner's depreciable asset had a cost of \$250,000 with a \$50,000 salvage value, and an 8-year rem

### Multiple Methods for Calculating Depreciation for Venus Company (Jessica Gardner Company)

Venus Company purchased a new piece of equipment on July 1, 2004 at a cost of \$600,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of \$50,000. The current year end is 12/31/05. Venus records depreciation to the nearest month. What is straight-line depreciation for 2005? a. \$55,000

### Depreciation

On July 1, 2006, N Company purchased for \$1,300,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of \$60,000. Depreciation is taken for the portion of the year the asset is used. Instructions (a) Complete the form below by determining the depreciation expense and year-end

### Computing Depreciation using SL and Units of Activity

Wichita Clinic purchased a new surgical laser for \$84,000. The estimated salvage value is \$4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 2,400 hours in year 3; 1,900 hours in year 4; 2,000 hours in year 5. Instructions

### 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. I want to check the one I have. Thanks!

### Depreciation in Tax and Stockholder Reporting

For 2007, Rico Metals reported \$9000 of sales, \$6000 of operating costs other than depreciation and \$1500 of depreciation. The company had no amortization charges, it had issued \$4000 of bonds that carry a 7% interest rate and its federal-plus-state income tax rate was 26%. 2008 data are expected to remain unchanged except for o

### Depreciation for partial periods: Boris Becker, Inc

Need Help with following problem: The cost of equipment purchased by Boris Becker, Inc., on June 1, 2007 is \$67,000. It is estimated that the machine will have a \$4,000 salvage value at the end of its service life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000 and its total product

### Depreciation Expense for Boris Becker

The cost of equipment purchased by Boris Becker, Inc., on June 1, 2007 is \$67,000. It is estimated that the machine will have a \$4,000 salvage value at the end of its service life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. Dur

### Depreciation True or False

The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset. True or False The safeguarding of assets is an objective of a company's system of internal control. True or False Accounts receivable are one of a company's least liquid assets. True or False The direct write-off method

### Depreciation of Costs of Goods

Use the following information for questions 26 through 30. The following data are provided: December 31 2008 2007 Cash \$ 375,000 \$ 250,000 Accounts receivable (net) 400,000 300,000 Inventories 650,000 550,000 Plant assets (net) 2,000,000 1,625,000 Accounts payable 275,000 200,000 Taxes

### Pyle Inc: Recovery deduction and regular depreciation

Pyle Inc., a calendar year taxpayer, generated over \$10 million taxable income in 2008. Pyle made one asset purchase: transportation equipment costing \$177,150. The equipment has a 5-year recovery period and was placed in service on February 9. Assuming that Pyle made the Section 179 election with respect to the equipment, co

### Depreciation Computations: Five Methods

Jon Seceda Furnace Corp. purchased machinery for \$315,000 on May 1, 2007. It is estimated that it will have a useful life of 10 years, salvage value of \$15,000, production of 250,000 units, and working hours of 25,000. During 2008 Seceda Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. From