On June 1, 2022, the company buys a new machine of greater capacity for $43,750, delivered, trading in the old machine which has a fair value and trade-in allowance of $25,000. To prepare the old machine for removal from the plant cost $94, and expenditures to install the new one were $1,880. It is estimated that the new machine has a useful life of 10 years, with a salvage value of $5,000 at the end of that time. (The exchange has commercial substance.)
Assuming that depreciation is to be computed on the straight-line basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June 1, 2022
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On June 1, 2022, the company buys a new machine of greater capacity for $43,750, delivered, trading in the old machine which has a fair ...” 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 statements is true regarding small businesses? a. Few people consider owning their own businesses. b. Owning a business is pretty easy. c. Little advanced planning is required to start a business. d.
Answers (1)
The day a bond or other obligation is due to be paid.
Answers (1)
A small business group assigned a member the task of "Devil's Advocate." What is this member's primary duty? a. To encourage groupthink by attacking solutions the group opposesb.
Answers (1)
Silver Mining is opening a new mineral extraction facility in the local town and will employ several thousand people.
Answers (1)
Which of these is a successful time to management strategy
Answers (1)
New Questions in Business
The sausage hut is looking at a new sausage system with an installed cost of $438,000. this cost will be depreciated straight-line to zero over the project's four-year life, at the end of which the sausage system can be scrapped for $69,000.
Answers (1)
With all the money i am spending today, will i be recieving anything complimentary
Answers (1)
On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000 on or before March 31, 2019. The company's fiscal year-end is December 31.
Answers (1)
The manager of a large apartment complex knows from experience that 100 units will be occupied if the rent is 400 dollars per month.
Answers (1)
Frito-Lay produces more than 20 varieties of chips. Suppose a retail store offers to stock five of Frito-Lay chips products in each store across the country.
Answers (1)