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- Expenditures After Acquisition Roanoke Manufacturing placed a robotic arm on a large assembly machine on January 1, 2019. At that time, the assembly machine was expected to last another 3 years. The following information is available concerning the assembly machine. The robotic arm cost $225,000 and was expected to extend the useful life of the machine by 3 years. Therefore, the useful life of the assembly machine, after the arm replacement, is 6 years. The assembly machine is expected to have a residual value of $120,000 at the end of its useful life. Required: 1. Prepare the journal entry necessary to record the addition of the robotic arm. 2. Compute 2019 depreciation expense for the machine using the straight-line method, and prepare the necessary journal entry. 3. What is the book value of the machine at the end of 2019? 4. CONCEPTUAL CONNECTION What would have been the effect on the financial statements if Roanoke had expensed the addition of the robotic arm?Depreciation Schedules Dunn Corporation acquired a new depreciable asset for $135,000. The asset has a 5-year expected life and a residual value of zero. Required: 1. Prepare a depreciation schedule for all 5 years of the assets expected life using the straight-line depreciation method. 2. Prepare a depreciation schedule for all 5 years of the assets expected life using the double-declining-balance depreciation method. 3. CONCEPTUAL CONNECTION What questions should be asked about this asset to decide which depreciation method to use?Nuts-R-Us, Inc. purchased nut-shelling equipment at a total cost of $80,000. The equipment was depreciated by using MACRS with a recovery class of 3 years and an anticipated end-of-useful-life value of $8000. The company has decided the equipment is no longer needed after two years and wishes to determine the minimum value it can accept for the equipment (that is, the lowest value that will result in no loss on the sale). Find the minimum selling price for the equipment.
- (Multiple Choice Question) Chaham Company purchases equipment costing $40,000 on January 1, 2015, with a useful life of 10 years and a residual value of $2000. On January 1, 2020 Chaham Company decides that the equipment will have a useful life of 5 additional years (15 years total starting in 2015), and will have a residual value of $0. Calculate the amortization expense for 2020 using the straight-line method. 1. $2100 2. $1400 3. $1900 4. None of the answers are correct 5. $2666.67A Class 10 YRS asset, whose acquisition cost is $ 145,000, is eligible for a 40% depreciation bonus and is then depreciated using MACRS. This is sold during year 3 for $ 50,000. Determine the following: a. Depreciation in the first year. b. Book value at the time of sale c. Gain or loss amount Economic Analysis for Engineers Don't use Excel!ng Enabled: Final Exam S23An energy production company has the following information regarding the acquisition of new gas-turbine equipment.Purchase price = $820,0002Transoceanic shipping and delivery cost = $4,300Installation cost (1 technician at $1,600 per day for 4 days) = $6,400Tax recovery period = 12 yearsBook depreciation recovery period = 8 yearsSalvage value = 12% of purchase priceOperating cost (with technician) = $185,000 per yearThe manager of the department asked your friend in accounting to enter the appropriate data into the tax-accountingprogram. What are the values of B, n, and Sin depreciating the asset for tax purposes that he should enter?The value of B is determined to be $The value of Sis determined to be $The value of n is determined to beSavedyears.
- Your company has purchased a large new truck-tractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Its MV at the end of five years is estimated as $40,000. Assume it will be depreciated under the GDS: Solve, a. What is the cumulative depreciation through the endof year three? b. What is the MACRS depreciation in the fourth year? c. What is the BV at the end of year two?Bruce Company acquired a machinery on April 1, 2020. Cost P 1,200,000 Residual Value P 120,000 Estimated Useful Life 8 years What is the depreciation for 2020 using double declining balance? A. P300,000 B. P150,000 C. P225,000 D. P202,500 What is the depreciation for 2021 using double declining balance? A. P270,000 B. P135,000 C. P243,750 D. P150,000ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
- SUBJECT: ENGINEERING ECONOMYTOPIC: DEPRECIATION SHOW THE COMPLETE AND DETAILED SOLUTION OF THIS PROBLEM. THANK YOU EXPERTS. E) Determine the rate of depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P150,000 when new and has an estimated scrap value of P20,000 at the end of 10 years using the double declining balance method.Find the book value of an asset that has an installed cost of $200,000, a recovery period of 5 years and an elapsed time since purchase of 3 years.Select one:a. $87,000b. $58,000c. $43,000d. $116,000XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation 2. Carrying amount of the equipment on December 31, 2017