On January 1, 2010, Arbuckle’s Carpet Cleaners purchased a machine at a cost of $42,000. The machine was expected to have a useful life of six years and no salvage value. The straight-line depreciation method was used. In January 2013, the estimate of salvage value was revised from $0 to $3,000. How much depreciation should Arbuckle’s record for 2013?
Answer to relevant QuestionsSimilar Motors has determined that several of its plants are impaired. The book value of the plants is $8.34 billion, but the fair market value of the plants is just $7.56 billion. How would Similar Motors record this ...On July 1, 2010, Seminole Construction Corporation purchased equipment for $62,000. Seminole also paid $2,500 to train employees how to use it. The equipment is expected to have a useful life of eight years and a salvage ...Classify the following items as either a capital expenditure or a revenue expenditure (an expense):1. Changed oil in the delivery truck2. Replaced the engine in the delivery truck3. Paid sales tax on the new delivery truck4. ...Using the selection from Books-A-Million’s annual report in Appendix A at the back of the book, calculate the following ratios for the most recent fiscal year:1. Return on assets (ROA)2. Asset turnover ratioClassify the following items as either a capital expenditure or a revenue expenditure (expense):1. Changed the filter in the moving van2. Painted the moving van3. Paid sales tax on the new moving van4. Installed a new ...
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