A fleet of refrigerated delivery trucks is acquired on January 5, 2011, at a cost of $1,200,000 with an estimated useful life of eight years and an estimated salvage value of $100,000. Compute the depreciation expense for the first three years using the double-declining-balance method.
Answer to relevant Questions1. Classify the following as either a revenue or a capital expenditure. a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years. b. Paid $200 cash per truck for the ...Gamma Co. owns a machine that costs $84,800 with accumulated depreciation of $36,800. Gamma exchanges the machine for a newer model that has a market value of $104,000. (1) Record the exchange assuming Gamma paid $60,000 ...Refer to the information in Exercise. Compute depreciation expense for year 2011 assuming the company uses the double-declining-balance method. In QS, On April 1, 2010, Bricen Backhoe Co. purchases a trencher for $253,000. ...On April 2, 2011, Mitzu Mining Co. pays $3,920,000 for an ore deposit containing 1,400,000 tons. The company installs machinery in the mine costing $210,000, with an estimated seven year life and no salvage value. The ...Teness Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2011, at a total cash price of $900,000 for a building, land, land ...
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