Question: A machine that cost $ 400,000 has an estimated residual value of $ 40,000 and an estimated useful life of 20,000 machine hours. The company

A machine that cost $ 400,000 has an estimated residual value of $ 40,000 and an estimated useful life of 20,000 machine hours. The company uses units- of- production depreciation and ran the machine 3,000 hours in year 1, 8,000 hours in year 2, and 6,000 hours in year 3. Calculate its book value at the end of year 3.

Step by Step Solution

★★★★★

3.47 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Machinery original cost 400000 Accumulated Depreci... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

577-B-A-I-A (5363).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. (a) Determine the amount of the...

Equipment with a cost of $304,000 has an estimated residual value of $41,600, has an estimated useful life of 16 years, and is depreciated by the straight-line method. (a) Determine the amount of the...

Depreciation calculation methods. Millco, Inc., acquired a machine that cost $400,000 early in 2013. The machine is expected to last for eight years, and its estimated salvage value at the end of its...

whats the answeer in m8 7 M8-5 Computing Book Value (Double-Declining-Balance Depreciation) LO8-3 Calculate the book value of a three-year old machine that has a cost of $55,000, an estimated...

Calculate the book value of a three-year-old machine that has a cost of $31,000, an estimated residual value of $1,000, and an estimated useful life of five years. The company uses straight-line...

A three-year-old machine has a cost of $17,000, an estimated residual value of $1,500, and an estimated useful life of 31,000 machine hours. The company uses units-of-production depreciation and ran...

1. A three-year-old machine has a cost of $17,200, an estimated residual value of $1,200, and an estimated useful life of 32,000 machine hours. The company uses units-of-production depreciation and...

A three-year-old machine has a cost of $44,500, an estimated residual value of $1,300, and an estimated useful life of 36,000 machine hours. The company uses units-of-production depreciation and ran...

Calculate the book value of a three-year-old machine that has a cost of $21,000, has an estimated residual value of $1,000 and an estimated useful life of 40,000 machine hours. The company uses...

M8-6 LO8-3 Computing Book Value (Units-of-Production Depreciation) Computing Book Value (Units-of-Production Depreciation) Calculate the book value of a three-year-old machine that has a cost of...

An incompressible fluid (constant density) flows steadily downward along a constant-diameter, insulated vertical pipe. Assuming internal energy remains constant, show that the pressure variation is...

Write a paper on social responsibility of business management. Research has been done on the theory and correlation of emotional intelligence related to organizational success and long-term...

Where does the Constitution place the judicial power? What is the highest court in the land and what is its dual role? Read the comments by Murray Gleeson, a former Chief Justice of the High Court,...

How can you interact with your customers during adaptive innovation in a way that it increases their engagement and differentiates your relationship?

Refer to the financial statements of The Home Depot in Appendix A and Lowes in Appendix B at the end of this book, or download the annual reports from the Cases section in the Connect library....

Mike Lynch is the manager of an upstate New York regional office for an insurance company. As the regional manager, his pay package includes a base salary, commissions, and a bonus, when the region...

Explain the relationships between adjustments and the following Chapter 3 concepts: (a) The time period assumption, (b) The revenue recognition principle, and (c) The expense recognition principle.

Miss Jones is a wheat farmer, and she is expecting to produce 5000 bushels in 3 months, i.e:, July. She would like to hedge the price of wheat using futures (future contracts). The current wheat...

Japanese investors purchased from Walt Disney Productions projected yen royalties. The 20-year stream of royalties is for Tokyo Disneyland. The present value of that stream of royalties, discounted...

QUESTION 26 1 points Which of the following factors are related to an ADR? Factor-1: An ADR is a certificate that represents ownership of a foreign stock. An ADR is typically created by a U.S. bank...