A piece of heavy equipment acquired on January 1 at a cost of $360,000 has an estimated
Question:
A piece of heavy equipment acquired on January 1 at a cost of $360,000 has an estimated useful life of 20 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years ending December 31 by
(a) The straight-line method and
(b) The double-declining-balance method.
Step by Step Answer:
First Year Second Year a 5 of 360000 18000 5 of 3600...View the full answer
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
An item of equipment acquired on January 1 at a cost of $60,000 has an estimated use of 25,000 hours. During the first three years, the equipment was used 5,000 hours, 6,000 hours, and 4,000 hours,...
-
Barton Construction Company purchased a piece of heavy equipment on January 1, 2009, which it is depreciating using the straight-line method. The equipments useful life is five years and its residual...
-
Barton Construction Company purchased a piece of heavy equipment on January 1, 2017, which it is depreciating using the straight-line method. The equipment's useful life is 5 years and its residual...
-
Divalent carbon species called carbenes care capable of fleeting existence. For example, methylene: CH2, is the simplest carbene. The two unshared electrons in methylene can be either spin-paired in...
-
Given that f(x) = x / 2 - x, find each of the following. (a) f(2) (b) f(1) (c) f(- 16) (d) f(- x) (e) f(- 2/3)
-
Brave Maven Inc. (BMI) operates in challenging economic times. It currently manufactures trucks and equipment used for construction as well as off-road automobiles and automotive parts. During the...
-
How might intuition, the analytical decision style, and the conceptual decision style help to work against problems arising from using bad data?
-
1. Work up a buying plan to use when buying from Ghuman's. 2. How should Hughes distribute the allotted open-to-buy dollars among the available sizes, colors, and fabrics? Synopsis: A department...
-
Where are four sales tickets being processed for the sale of different technology stocks. The first order is marked as being sold at 9:40 am, and the remaining three tickets were marked as sold at...
-
Determine the node voltages in the circuit in Fig. 3.67 using nodal analysis. Figure 3.67 10 4 2 5 8
-
Equipment acquired at the beginning of the fiscal year at a cost of $160,000 has an estimated residual value of $4,500 and an estimated useful life of 20 years. Determine the following: (a) The...
-
A refrigerator used by a restaurant has a cost of $45,000, an estimated residual value of $7,500, and an estimated useful life of 15 years. What is the amount of the annual depreciation computed by...
-
Some of the scandals of the early 2000s were the result of misapplying accounting principles, and others were the result of questionable accounting principles. Which do you think describes the...
-
What is the appropriate tax rate for the portion of an annuity check that is calculated to be return of investment?
-
Describe an example of "small design" and an example of a "big design" that you encountered in your ever day life. How would you describe the difference between these two types of design given your...
-
Demonstrate how you attended class timely on not Communication Demonstrates effective interpersonal skills, through written and oral communication. Effective Engagement with Classmates and Professor...
-
Describe what marketing strategy is and how it is implemented For T-Mobile, describe what your primary marketing strategy/strategies will be and how you plan to implement them. Discuss how your...
-
The strategic approach is one that combines the written message with at least one other channel for communication, such as face-to-face conversation. The final product will be in the form of an...
-
How might the efficiency with which a National Blood Service controls its inventory affect its ability to collect blood?
-
What tools are available to help shoppers compare prices, features, and values and check other shoppers opinions?
-
Many businesses are offering their products and services over the Internet. Some of these companies and their Internet addresses are listed below. (a) In groups of three, assign each person in your...
-
Differentiate between a profit center and an investment center. Discuss.
-
In what major respect would budget performance reports prepared for the use of plant managers of a manufacturing business with cost centers differ from those prepared for the use of the various...
-
Are there any financial projection one could make specifically for Huntley school district 158?
-
When collecting an account that has been previously written off two journal entries are recorded. The first of these entries debits accounts receivable while the second of these entries credits...
-
If the firm it paid $1.73 per share in dividends, its dividend payout ratio would be ______ enter your response here%. (Round to two decimal places.)
Study smarter with the SolutionInn App