Razar Sharp Company purchased tool sharpening equipment on July 1, 2008, for $48,600. The equipment was expected
Question:
Razar Sharp Company purchased tool sharpening equipment on July 1, 2008, for $48,600. The equipment was expected to have a useful life of three years, or 7,500 operating hours, and a residual value of $3,000. The equipment was used for 1,800 hours during 2008, 2,600 hours in 2009, 2,000 hours in 2010, and 1,100 hours in 2011.
Instructions
Determine the amount of depreciation expense for the years ended December 31, 2008, 2009, 2010, and 2011, by
(a) The straight-line method,
(b) The units-of-production method, and
(c) The double-declining-balance method.
Step by Step Answer:
a Determining the amount of depreciation expenses for the ...View the full answer
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $4,500. The equipment was used for 12,000 hours during 2008, 9,000 hours in 2009,...
-
Knife Edge Company purchased tool sharpening equipment on July 1, 2010, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900. Instruction...
-
Knife Edge Company purchased tool sharpening equipment on July 1, 20Y5, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900. Instruction...
-
Kiki purchases a $16,000 bond from Green Corp. on January 1, 2021. The bond has a 10% annual interest rate. On December 1, 2021, Kiki gifts the bond to her son, Branson. How much income is reported...
-
Write a brief but complete essay in which you describe the probability distributions you have studied so far. Which apply to discrete random variables? Which apply to continuous random variables?...
-
A production line that produces protein bars operates 7 days per week, with three 8-hour shifts per day. The line was designed to produce bars at a rate of 800 per hour. Last week the line produced...
-
True or False. For a bar element of length \(l\) with two nodes, the shape function corresponding to node 2 is given by \(x / l\).
-
An estimate of the demand function for household furniture produced the following results: F = 0.0036Y1.08 R0.16 P0.48 r2 = 0.996 Where F = furniture expenditures per household Y = disposable...
-
Creating a relationship with internal stakeholders through effective communication is a key to organizational success. Identify and discuss the five keys to effective communication with internal...
-
Carmen Dahlen opened a secretarial school called Star office Training. a. Dahlen contributed the following assets to the business: Cash ........$5,700 Computers ....... 5,000 Office Equipments ......
-
Newbirth Coatings Company purchased waterproofing equipment on January 2, 2009, for $380,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual...
-
New tire retreading equipment, acquired at a cost of $144,000 at the beginning of a fiscal year, has an estimated useful life of four years and an estimated residual value of $10,800. The manager...
-
Form a metaphor that describes your current understanding of critical thinking, and describe it for your classmates
-
Enron used off-balance-sheet entities to overstate earnings via related-party sales and loans disguised as sales. True/False
-
In respect of Enrons SPEs Chewco and Jedi, the Powers Report identified three sources of fictitious income streams: a ______________ fee, management fees, and revenue recognized on Enrons own stock.
-
The birth of the weather derivative grew out of Enrons attention to fundamental weather information for its gas trading. True/False
-
Securitization refers to the pooling of loans and the trading of portions of these loans on securities markets in the form of collateralized debt obligations. True/False
-
Explain how Enron used the Prepay Transactions to overstate CFFO.
-
Show that the autocorrelation function of a WSS process \(\{X\}\) presents the following properties: (a) \(R_{X}(0)=E\left\{X^{2}(n) ight\}\) (b) it is an even function; that is:...
-
The Adjusted Trial Balance columns of a 10-column work sheet for Webber Co. follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by...
-
Why was the USA PATRIOT Act of 2001 implemented?
-
What is the justification for the following deviations from recognizing revenue at the time of sale? (a) Installment sales method of recognizing revenue. (b) Recognition of revenue at completion of...
-
What is the justification for the following deviations from recognizing revenue at the time of sale? (a) Installment sales method of recognizing revenue. (b) Recognition of revenue at completion of...
-
What is the justification for the following deviations from recognizing revenue at the time of sale? (a) Installment sales method of recognizing revenue. (b) Recognition of revenue at completion of...
-
You placed $6,599 in a savings account today that earns an annual interest rate of 3 percent compounded annually. How much you will have in this account at the end of 2 years?
-
You're planning a trip to France. The current exchange rate is 1.21 dollars per euro. If you want to get 3,000, how many dollars do you have to pay? If you want to exchange $3,000, how many euros...
-
The exchange rate between euros and dollars is currently 0.83 euros per dollar. Inflation is expected to be 1% in Europe and 2% in the US. If relative purchasing power parity holds, what is the...
Study smarter with the SolutionInn App