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
Whose responsibility is it to keep ladders in good condition? A. Employees B. Employers
Answers (1)
Factors such as international trade agreements, economic conditions, and political unrest will have the greatest impact on what type of business environment?
Answers (1)
When creating a business plan, what should be the first thing you do? What order should the parts be created?
Answers (1)
The cost to produce the goods or services sold for a given period is referred to as
Answers (1)
Which of the following conforms to the notion put forward by the school of thought associated with stage models? a. Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries. b.
Answers (1)
New Questions in Business
Marginal productivity theory implies that a worker will be paid an amount a. equal to his or her contribution to the productive process. b. determined by his or her individual bargaining. c.
Answers (1)
Which of the following changes would represent an austerity measure? Choose one or more: A. a decrease in the number of public workers, to reduce government expenses B. an increase in the number of public workers, to reduce government expenses C.
Answers (1)
A small business produces a single product and reports the following dа ta: Sales price $ 8.50 per unit Variable cost $ 5.
Answers (1)
The lower the times interest earned ratio the more likely A) a business will need to borrow money B) a business will suffer a loss C) a default in payment will occur D) interest payments can be made
Answers (1)
Corba Company is evaluating whether to replace an old machine with a new, more efficient machine. Corba purchased the old machine for $600,000, and there is $180,000 of accumulated depreciation recorded for the machine.
Answers (1)