peed Runner Company has acquired huge machinery at a cost of $150,000 (with no breakdown of the component parts). The estimated useful life is 8 years. At the end of the fifth year, the main engine requires replacement, the remainder of the machinery is perfectly worthy and is expected to last for the next three years. The cost of a new engine is $85,000 with discounted amount of $63,
peed Runner Company has acquired huge machinery at a cost of $150,000 (with no breakdown of the component parts). The estimated useful life is 8 years. At the end of the fifth year, the main engine requires replacement, the remainder of the machinery is perfectly worthy and is expected to last for the next three years. The cost of a new engine is $85,000 with discounted amount of $63,
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter9: Depreciation (deprec)
Section: Chapter Questions
Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...
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Speed Runner Company has acquired huge machinery at a cost of $150,000 (with no breakdown of the component parts). The estimated useful life is 8 years. At the end of the fifth year, the main engine requires replacement, the remainder of the machinery is perfectly worthy and is expected to last for the next three years. The cost of a new engine is $85,000 with discounted amount of $63,400 (discounted back five years with rate 6% = $63,400).
Required: Compute the cost of the machinery.
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