On October 1, 2023, Lavaux Inc. (a calendar year end business) purchased a machine for $20,000...

 
   

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On October 1, 2023, Lavaux Inc. (a calendar year end business) purchased a machine for $20,000 and placed it in service. The machine has an estimated salvage value of $2,000 and a useful life of 6 years. Compute depreciation expense for the year ended December 31, 2023, assuming that Lavaux Inc. uses the straight-line method. On July 1, 2023, Grateau Group (a calendar year end business) purchased equipment for $32,000 and placed it into service. The equipment has an estimated salvage value of $4,000 and a useful life of 4 years. Compute depreciation expense for the year ended December 31, 2023 assuming that Grateau Group uses the double-declining-balance method. On January 1, 2019 (Year 1), Champre Company purchased a delivery truck for $50,000. The truck has an estimated salvage value of $4,500 and a useful life of 5 years. On January 1, 2023, the beginning balance in accumulated depreciation was $43,520. Compute depreciation expense for the year ended December 31, 2023 (Year 5), assuming that Champre Company uses the double-declining- balance method. On January 1, 2021 (Year 1), Fourtier Corporation ((a calendar year end business) purchased a delivery for $45,000 and placed it into service. The truck had an estimated salvage value of $3,000 and a useful life of 6 years. Fourtier Corporation uses the straight-line method to compute depreciation. On April 1, 2023 (Year 3), Fourtier Corporation sells the truck for $28,000. Compute the gain (loss) on the sale. Enter a loss as a negative number. On October 1, 2023, Lavaux Inc. (a calendar year end business) purchased a machine for $20,000 and placed it in service. The machine has an estimated salvage value of $2,000 and a useful life of 6 years. Compute depreciation expense for the year ended December 31, 2023, assuming that Lavaux Inc. uses the straight-line method. On July 1, 2023, Grateau Group (a calendar year end business) purchased equipment for $32,000 and placed it into service. The equipment has an estimated salvage value of $4,000 and a useful life of 4 years. Compute depreciation expense for the year ended December 31, 2023 assuming that Grateau Group uses the double-declining-balance method. On January 1, 2019 (Year 1), Champre Company purchased a delivery truck for $50,000. The truck has an estimated salvage value of $4,500 and a useful life of 5 years. On January 1, 2023, the beginning balance in accumulated depreciation was $43,520. Compute depreciation expense for the year ended December 31, 2023 (Year 5), assuming that Champre Company uses the double-declining- balance method. On January 1, 2021 (Year 1), Fourtier Corporation ((a calendar year end business) purchased a delivery for $45,000 and placed it into service. The truck had an estimated salvage value of $3,000 and a useful life of 6 years. Fourtier Corporation uses the straight-line method to compute depreciation. On April 1, 2023 (Year 3), Fourtier Corporation sells the truck for $28,000. Compute the gain (loss) on the sale. Enter a loss as a negative number.