Cavity Baking Co. has purchased three machines In recent years. However, each machine Is depreciated under...
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Cavity Baking Co. has purchased three machines In recent years. However, each machine Is depreciated under a different depreciation method. Here is the relevant information: Useful Life In Years Date Salvage Cost Machine Purchased Value 07/1/2004 $43,000 $3,000 01/1/2004 $20,000 $2,000 01/1/2002 $25,000 $4,000 6 Straight-line 8 Double Declining Balance 6 Straight-line Assumption: Depreciation expense is recorded once a year, at the end of the year (12/31). Oven Mbow Forklift Depreciation Method 1. Compute the amount of accumulated depreciation for the oven on December 31, 2004. 2. Compute the amount of depreciation expense for the mixer on December 31, 2005. 3. Prepare the journal entry to record total depreciation expense, for all three assets, for th year 2006. Cavity Baking Co. has purchased three machines In recent years. However, each machine Is depreciated under a different depreciation method. Here is the relevant information: Useful Life In Years Date Salvage Cost Machine Purchased Value 07/1/2004 $43,000 $3,000 01/1/2004 $20,000 $2,000 01/1/2002 $25,000 $4,000 6 Straight-line 8 Double Declining Balance 6 Straight-line Assumption: Depreciation expense is recorded once a year, at the end of the year (12/31). Oven Mbow Forklift Depreciation Method 1. Compute the amount of accumulated depreciation for the oven on December 31, 2004. 2. Compute the amount of depreciation expense for the mixer on December 31, 2005. 3. Prepare the journal entry to record total depreciation expense, for all three assets, for th year 2006.
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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