Delta Company purchased a photocopier costing $45,000 on January 1, 2014. The equipment is expected to produce a total of 4,000,000 copies over its productive life. Its residual value at the end of its useful life is estimated to be $5,000. The equipment actually produced: 650,000 copies in 2014; 798,000 copies in 2015; 424,000 copies in 2016; 935,000 copies in 2017; and 1,193,000 copies in 2018. Calculate depreciation for 2014 through to 2018 using the units-of-production method. Delta’s year-end is December 31.
Answer to relevant QuestionsWimberly Holdings acquired a delivery truck on January 1, 2014, for $86,000. It is expected to last five years and then sells for about $16,000. Calculate depreciation for each year of the truck’s life using the ...Refer to Exercise 10-10. Assume that the only other assets at December 31, 2013, were total current assets of $338,000. Prepare the asset section of Oroplata Exploration’s classified balance sheet at December 31,2013.On November 3, 2014, Yellow Media exchanged an old computer for a new computer that had a list price of $190,000. The original cost of the old computer was $150,000 and related accumulated depreciation was $65,000 up to the ...On January 1, 2014, Bona Vista Co. purchased land, a building, equipment, and tools for a total price of $4,320,000, paying cash of $1,104,000 and borrowing the balance from the bank. The bank appraiser valued the assets as ...The Hilton Skating Club used straight-line depreciation for a used Zamboni* that cost $43,500, under the assumption it would have a four-year life and a $5,000 trade-in value. After two years, the club determined that the ...
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