On March 1 of the current year. Dexter Cormpany acquired a machine costing P 650,000 with an estimated useful life of 15 years with salvage value of P S0,000. The ond of the fiscal yoar is July 31 of the curront yoar. How much depreciation is to be charged on July 31 of the current year? P 36,667 P 13,333 P16,667 P 40,000

On March 1 of the current year. Dexter Cormpany acquired a machine costing P 650,000 with an estimated useful life of 15 years with salvage value of P S0,000. The ond of the fiscal yoar is July 31 of the curront yoar. How much depreciation is to be charged on July 31 of the current year? P 36,667 P 13,333 P16,667 P 40,000

Name: On March 1 of the current year, Dexter Cormpany acquired a machine co
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: On March 1 of the current year, Dexter Cormpany acquired a machine costing P 650,000 with an estimated useful life of 15yoars with salvage value of P S0,000. The ond of the fiscal yoar is July 31 of the curront yoar.How much depreciation is to be ch

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 6CE

See similar textbooks

Similar questions

IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
A certain equipment costs P7,000 has a salvage value of P350 at the end of its life. The book value at the end of 14 years is P2,197.22. Using Sum of the Years-Digits Method of Depreciation, determine the following: a. Length of service of the equipment. b. Depreciation charge on the 5th year. c. Book value after 7 years.
A lathe machine has an estimated salvage value of P10,000 at the end of its useful life of 8 yrs. Compute the first cost of the machine if the total depreciation at the end of 4th year using double declining balance method is P957,031.25.
The cost of a machine is 18,000 with a salvage value of RO 4270 at the end of its life of five years. Applying written down value method, the depreciation for the second year is ______________. a. RO 4500 b. RO 3375 c. RO 10125 d. RO 13500