Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000.
a. Calculate the depreciation expense for each year of the asset's life using:
1. Straight-line depreciation.
2. Double-declining-balance depreciation.
3. 150% declining-balance depreciation.
b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2013, under each of the three methods? (Note: The machine will have been used for one-half of its first year of life.)
c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2014, under each of the three methods.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following focuses on the ability of a company to earn profits? Select one: a. The inventory turnover b. The quick ratio c. The return on total assets d. The fixed charge coverage ratio
Answers (1)
How can producers maximize their profit? Check all that apply. 1) They can work to increase their marginal cost. 2) They can work to decrease their marginal cost. 3) They can raise prices to increase marginal revenue.
Answers (2)
Bank ABC has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.
Answers (1)
To save for retirement, a student invests $60 each month in an ordinary annuity with 6 % interest compounded monthly. Determine the accumulated amount in the student's annuity after 35 years.
Answers (1)
FinanceCo lent $8 million to Corbin Construction on January 1, 2021, to construct a playground. Corbin signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. Required: 1.
Answers (1)
New Questions in Business
A. True b. False: before a computer can execute a program written in a high level language, such as c++, it must be translated into object code.
Answers (1)
the market value of a property is $90,000 and is assessed at 35%. The annual taxes are $1,260. What is the tax rate?
Answers (1)
Someone who likes building, designing, or creating things probably has a (n)
Answers (1)
A company's board of directors votes to declare a cash dividend of $1.65 per share of common stock. The company has 33,000 shares authorized, 28,000 issued, and 27,500 shares outstanding. The total amount of the cash dividend is: Multiple Choice a.
Answers (1)
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000.
Answers (1)