Blake furniture recently purchased new equipment for its plant. The list price of the equipment was $40,000.Company paid sales taxes of $2,100 at the date of purchase. Freight charges for the equipment totaled $680. Installation and training costs related to the equipment amounted to $900. During installation, one of the pieces of equipment was accidentally damaged by an employee. It cost $400 to repair this damage. Blake furniture will depreciate this equipment by the straight-line method (half-year convention) and 150% declining balance method over an estimated useful life of 4 years assuming a $3,000 scrap value.  Prepare depreciation schedules

Question

Blake furniture recently purchased new equipment for its plant. The list price of the equipment
was $40,000.Company paid sales taxes of $2,100 at the date of purchase. Freight charges for the
equipment totaled $680. Installation and training costs related to the equipment amounted to $900.
During installation, one of the pieces of equipment was accidentally damaged by an employee. It
cost $400 to repair this damage. Blake furniture will depreciate this equipment by the straight-line
method (half-year convention) and 150% declining balance method over an estimated useful life
of 4 years assuming a $3,000 scrap value.
 Prepare depreciation schedules

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Depreciation Accounting