Plant Assets and Depreciation Angela purchased a machine for her business on 1 March 20X1 for $12,000. She incurred additional costs for transportation of $1,300 and installation of $2,000. Shortly after she started to use the machine, it broke down and the repairs of the machine cost $600. Angela charges depreciation at 10% per annum on straight line basis with a full year’s charge in the year of acquisition. Required: Calculate the correct net book value of the machine at the year-end date of 31 December 20X1.

Q: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000…

A: Req-1   Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion…

Q: Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The…

A: As requested to answer only part B so we are answering only Part B.

Q: factory equipment for $850,000. In addition, it paid $82,000 in sales tax and $7,000 in installation…

A: Calculation of Purchase price  of equipment:          Equipment price         = $850,000 Add: Sales…

Q: NewTech purchases computer equlpment for $273,000 to use in operating activities for the next four…

A: Annual depreciation under SLM  = Cost- salvage / useful life   Cost - salvage =  273000-26000…

Q: Bridgeport Company acquires a delivery truck at a cost of $56,000. The truck is expected to have a…

A:

Q: Perez Company acquires an ore mine at a cost of $1,680,000. It incurs additional costs of $470,400…

A: The cost of ore mine will include cost of purchase plus cost incurred to access the mine.

Q: Required information [The following information applies to the questions displayed below.] Cheetah…

A: First, compute the depreciation rate as shown below: Depreciation rate = (Cost - Residual…

Q: Colquhoun International purchases a warehouse for $321,000. The best estimate of the salvage value…

A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is…

A: Calculate the year 1 depreciation as follows: Year 1 depreciation = 2*(Book value of asset /5) Year…

Q: A machine purchased by the Hubalol Company originally cost $245,000. Delivery and installation…

A: Machinery, furniture, and building are the few assets whose value decreases over a period due to…

Q: Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following…

A: Cost to be capitalise  all expenses incurred  to acquire an asset to get asset ready to use.…

Q: Required information [The following information applies to the questions displayed below.] Cheetah…

A: Depreciation can be referred to the amount by which the book value of an asset reduces every year.…

Q: Calcualte the correct net book value of the machince at the year-end date of 31 December 20x1

A: In order to calculate the Cost of the Machine the purchase of the machine, installation cost,…

Q: Zeigler Manufacturing Company purchased a robot for $720,000 at the beginning of year 1. The robot…

A: Depreciation can be computed under the following methods as enumerated below: a) Straight Line  b)…

Q: Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of…

A: An asset gets its value decreased due to wear and tear and time passage, this is called…

Q: Oriole Company acquires a delivery truck at a cost of $82,000. The truck is expected to have a…

A: Double-declining balance method (Accelerated method): In this method of depreciation, the…

Q: New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning of the…

A: 1.a

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is…

A: Accounting defines depreciation as the systematic reduction of a fixed asset's reported cost until…

Q: Grouper Company acquires a delivery truck at a cost of $50,000. The truck is expected to have a…

A: Depreciation expense is charged against the value of fixed assets. It can be calculated using the…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $40,000. The machine is…

A: The calculation of double declining balance rate has been made as follows: Double declining balance…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation is an expense charged on the basis of a reduction in the value of the asset. It can be…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $36,000. The machine is…

A: Answer)   Calculation of depreciation expense for the year 2 Depreciation for Year 2 = Book value at…

Q: image  to question uploaded. I have been really having issues writing the journal entries

A: (a)Determine the annual depreciation expense, accumulated depreciation, and the book value by…

Q: Bixby Corporation purchased a forklift for $40,000 on July 1. The forklift has an estimateduseful…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Martin Company purchases a machine at the beginning of the year at a cost of $126,000. The machine…

A: Depreciation rate  = 2/useful life  =2/4 =0.5 Or 50%

Q: Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of…

A: Since you have asked a question with multiple subparts, we will solve the first two parts for you.…

Q: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Q: Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been…

A: Straight-line method: The depreciation method which assumes that the consumption of economic…

Q: New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: Susquehanna Company purchased an asset at the beginning of the current year for $250,000. The…

A: Straight-line depreciation seems to be the standard method for equitably recognizing the carrying…

Q: Pearl Corporation acquired manufacturing machinery on January 1 for $9,000. During the year, the…

A: Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that…

Q: Martin Company purchases a machine at the beginning of the year at a cost of $155,000. The machine…

A: Depreciation is considered a reduction in the value of the asset due to the uses of that asset. We…

Q: Wetherby purchased a machine on 1 July 20X7 for $500,000. It is being depreciated on a straight line…

A: We have the following information: Wetherby purchased a machine on 1 July 20X7 for $500,000  It is…

Q: Required information [The following information applies to the questions displayed below.] NewTech…

A: Depreciation: Depreciation is an accounting method for distributing a tangible or physical asset's…

Q: i just want to know the answer

A:

Q: In January 20x8, Titania Co. purchased a machine that cost $80,000. The equipment is estimated to…

A: Depreciation (sum-of-the-years'-digits method) = (Cost of the assets - Salvage value) x Expected…

Q: Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The…

A: Depreciation expense is used to decreased the value of assets due to usage of that assets. There are…

Q: Company purchases a machine for $4,000,000. The machine has a residual value of $200,000. The…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: New lithographic equipment, acquired at a cost of $875,000 on March 1 of Year 1 (beginning of the…

A: Straight line method depreciation: = ( Cost of asset - residual value ) / useful life of years.

Q: Concord Corporation purchased a piece of equipment for $85,200. It estimated an 5-year life and…

A: Solution: Accumulated depreciation upto 3 years = (85200-2200)*3/5 = $49,800 Book value at the…

Q: Required information [The following information applies to the questions displayed below.] Cheetah…

A: Given information is: Cost of machine = $122000 Residual value = $30500 Useful life = 4 years

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a…

A: Straight line method of depreciation:  This is one of the methods to calculate the depreciation on…

Q: Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value…

A: Depreciable cost=Purchase value-Salvage value=$301,000-$16,000=$285,000

Q: Kingbird Company purchased a truck for $70,300. The company expected the truck to last four years or…

A: Solution: Units-of-activity method: Depreciation expense per mile = (70300 - 6300) / 100000 = $0.64…

Q: Raine Company has a machine that originally cost $170,000. Depreciation has been recorded for five…

A: Depreciation as per straight line method = (Cost - Salvage value) /useful life = ($170, 000 - $12,…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.