Question: Bramble Corporation bought a machine on October 1 , 2 0 2 3 , for $ 7 1 , 0 0 0 , f .

Bramble Corporation bought a machine on October 1,2023, for $71,000, f.o.b. the place of manufacture. Freight to the point where it was set up was $300, and $600 was expended to install it. The machines useful life was estimated at 10 years, with a salvage value of $4,000. On October 1,2024, an essential part of the machine was replaced, at a cost of $6,390, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation could not be determined with any accuracy.
On October 1,2027, the company bought a new machine of greater capacity for $80,000, delivered, trading in the old machine which had a fair market value and trade-in allowance of $23,000. To prepare the old machine for removal from the plant cost $68, and expenditures to install the new one were $3,200. It was estimated that the new machine has a useful life of 10 years, with a salvage value of $9,000 at the end of that time. The exchange had commercial substance.
Assuming that depreciation is to be computed on the straight-line basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning October 1,2027.(Round intermediate calculations and final answers to 0 decimal places, e.g.5,125.)
Depreciation for the year beginning October 1,2027

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