Problem 3 On January 2, 2012, Protein Company purchased a transportation equipment costing 2,400,000. The new asset has an estimated useful life of 8 years with no salvage value. Protein Company depreciates this type of asset using the straight line method. On January 2, 2014, Protein determined that the machine had a useful life of 6 years from the date of acquisition with no salvage value. As a result of the change in the estimated useful life of the asset, what is the carrying value o the transportation equipment as of December 31, 2014. a. 1,200,000 b. 1,350,000

Problem 3 On January 2, 2012, Protein Company purchased a transportation equipment costing 2,400,000. The new asset has an estimated useful life of 8 years with no salvage value. Protein Company depreciates this type of asset using the straight line method. On January 2, 2014, Protein determined that the machine had a useful life of 6 years from the date of acquisition with no salvage value. As a result of the change in the estimated useful life of the asset, what is the carrying value o the transportation equipment as of December 31, 2014. a. 1,200,000 b. 1,350,000

Name: Problem 3On January 2, 2012, Protein Company purchased a transportati
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Description: Problem 3On January 2, 2012, Protein Company purchased a transportation equipment costing 2,400,000.The new asset has an estimated useful life of 8 years with no salvage value. Protein Companydepreciates this type of asset using the straight line me

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 21E

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Problem 3
On January 2, 2012, Protein Company purchased a transportation equipment costing 2,400,000.
The new asset has an estimated useful life of 8 years with no salvage value. Protein Company
depreciates this type of asset using the straight line method. On January 2, 2014, Protein determined
that the machine had a useful life of 6 years from the date of acquisition with no salvage value.
As a result of the change in the estimated useful life of the asset, what is the carrying value o the
transportation equipment as of December 31, 2014.
a.
1,200,000
b.
1,350,000

C.
1,500,000
d.
1,800,000
Problem 4
Calories Company purchased an equipment for 540,000 on January 2, 2013. The equipment has

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