At the beginning of the year, Mahogany. Incorporated bought machinery, shelving, and a forklift. The machinery...
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At the beginning of the year, Mahogany. Incorporated bought machinery, shelving, and a forklift. The machinery initially cost $33,600 but had to be overhauled (at a cost of $2,800) before it could be installed (at a cost of $1,400) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $550 in each year. The shelving cost $10.300 and was expected to last 5 years, with a residual value of $800. The forklift cost $19,800 and was expected to last six years, with a residual value of $2,400 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value). Double-declining-balance Year 1 Year 2 4.400 At the beginning of the year, Mahogany. Incorporated bought machinery, shelving, and a forklift. The machinery initially cost $33,600 but had to be overhauled (at a cost of $2,800) before it could be installed (at a cost of $1,400) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $550 in each year. The shelving cost $10.300 and was expected to last 5 years, with a residual value of $800. The forklift cost $19,800 and was expected to last six years, with a residual value of $2,400 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value). Double-declining-balance Year 1 Year 2 4.400
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DoubleDecliningBalance Depreciation for Forklift 1 Calculate the Depreciation Rate The doubledeclini... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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