A machine costing $120,000 has an estimated salvage value of $15,000 and an estimated life of 5 years or 15,000 hours. It will be depreciated by the units of production method. What is the amount of depreciation for the second full year, during which the machine was used for 5,000 hours?

1. A machine is purchased at the beginning of the fiscal year at a cost of $75,000 with an estimated salvage value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining balance method?

2. Xtra Company purchased an Argus business for $96,000 above the fair value of its net assets. Argus had developed goodwill for 12 years. How much would Xtra amortize the goodwill for its first year?

3. Newport Company has sales of $2,025,000 for the current year. The book value of its fixed assets at the beginning of the year was $550,000 and at the end of the year it was $800,000. what is the fixed asset turnover ratio for Newport ?

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1 The double declining balance method uses a depreciation rate that is double the straightline depre... View the full answer