El Tapitio purchased restaurant furniture on September 1, 2015, for $ 45,000. Residual value at the end of an estimated 10-year service life is expected to be $ 6,000. Calculate depreciation expense for 2015 and 2016, using the straight-line method, and assuming a December 31 year-end.
Answer to relevant QuestionsHawaiian Specialty Foods purchased equipment for $ 30,000. Residual value at the end of an estimated four-year service life is expected to be $ 3,000. The machine operated for 3,100 hours in the first year, and the company ...The balance sheet of Cedar Crest Resort reports total assets of $ 840,000 and $ 930,000 at the beginning and end of the year, respectively. The return on assets for the year is 20%. Calculate Cedar Crest’s net income for ...Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology .........$ 3,900,000Engineering design work ...Tasty Subs acquired a delivery truck on October 1, 2015, for $ 21,500. The company estimates a residual value of $ 2,500 and a six- year service life. It expects to drive the truck 100,000 miles. Actual mileage was 5,000 ...Brick Oven Corporation was organized early in 2015. The following expenditures were made during the first few months of the year:Attorneys’ fees to organize the corporation ....... $ 7,000Purchase of a patent ...
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