At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery...
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At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it. At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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