1 Workman Company purchases a machine on January 2, 2012 for $800,000 The machine has an estimated useful life of 5 years and a salvage value of $100,000 Depreciation was computed by the 150 declining balance method What is the amount of accumulated depreciation at the end of December 31, 2013 2 El...

1 Accumulated depreciation 800000 x 30 240000 ...

1. Workman Company purchases a machine on January 2, 2012 for $800,000. The machine has an estimated...

Question:

1. Workman Company purchases a machine on January 2, 2012 for $800,000. The machine has an estimated useful life of 5 years and a of $100,000. Depreciation was computed by the 150% declining-balance method. What is the amount of accumulated depreciation at the end of December 31, 2013?
2. Elliott Corp. failed to record accrued salaries for 2011, $2,000; 2012, $2,100; and 2013, $3,900. What is the amount of the overstatement or understatement of Retained Earnings at December 31, 2014?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...