On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightline method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST Co. determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 20X9 of: a) $1,095,000. b) $1,155,000. c) $1,200,000. d) $1,320,000
On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightline method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST Co. determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 20X9 of: a) $1,095,000. b) $1,155,000. c) $1,200,000. d) $1,320,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 6BCRQ
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Question
On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and
method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST
Co. determined that the machine had a useful life of six years from the date of acquisition and will have a
salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The
accumulated depreciation for this machine should have a balance at December 31, 20X9 of:
a) $1,095,000.
b) $1,155,000.
c) $1,200,000.
d) $1,320,000
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