Ask Question
BusinessBusiness
23 February, 18:27

Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2021, Waterway changed its estimates to a total useful life of 5 years with a salvage value of $99000. What is 2021 depreciation expense

+3
Answers (1)
  1. 23 February, 19:21
    0
    The depreciation charge in 2021 is $ 164,000.00

    Explanation:

    Annual depreciation charge=cost-salvage value/useful life

    cost is $610,000

    salvage value is $61,000

    useful life is 9 years

    Annual depreciation charge = ($610,000-$61,000) / 9=$61000

    The depreciation of charge of $61000 is applicable to years 2018,2019 and 2020 respectively.

    The estimates of the asset changed in the year 2021, hence a new depreciation based on the present book value is required.

    revised depreciation charge=$610,000 - ($61,000*3) - $99,000 / (5-3) =

    $164,000.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the estimated ...” 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
Janie obtains a 30-year 5/2 ARM at 3% with a 3/7 cap structure in the amount of $164,500. What is the monthly payment during the initial period? $456.94 $693.54 $780.08 $883.07
Answers (1)
Suppose you buy lunch for $16.60 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?
Answers (1)
As the Toronto-based Four Seasons hotel chain remodels an existing hotel in Mumbai to bring it to the five-star hotels exacting standards, it is building a magnificent revolving restaurant overlooking the Arabian Sea at World.
Answers (1)
When an organization lacks policies, its operations become less predictable. Which of the following is a challenge you can expect without policies? a. Lower costsb. Increased regulatory compliance c. Customer dissatisfactiond.
Answers (1)
Temporary workers-often called temps-may not be subject to the contractual obligations or general policies that govern other employees. a. True b. False
Answers (1)
New Questions in Business
For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales;
Answers (1)
Steven is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 25 percent, while Copper stock has an expected return of 19 percent.
Answers (1)
Continuous quality improvement depends heavily upon: Select one: a. hard work b. monitoring special causes of variance c. use of checklists d. employment of the PDCA cycle
Answers (1)
The difficulty in cost-benefit analysis is that the benefits are usually evident and easily measurable, while the costs are not always evident or measurable. A) True B) False
Answers (1)
What's the difference between price skimming and price penetration strategies?
Answers (1)
Home » Business » Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the estimated useful life is 9 years. The straight-line method is used for depreciation.
Sign Up Forgot Password?