Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What is its book value after 6 years using the MACRS depreciation method? O $111,405.80 O $46,594.20 O $62,811.50 O $95,188.50

Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What is its book value after 6 years using the MACRS depreciation method? O $111,405.80 O $46,594.20 O $62,811.50 O $95,188.50

Name: EconomicsEquipment having a first cost of $158,000, a life of 10 year
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Description: EconomicsEquipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What is its book value after 6 years using theMACRS depreciation method?O $111,405.80O $46,594.20O $62,811.50O $95,188.50

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
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Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
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