Greene Company purchased a machine for $75,000 that was expected to last 6 years and to have a salvage value of $6,000. At the beginning of the machine's fourth year the company decided that the estimated useful life should be revised to a total of 10 years instead of 6 years and the salvage value revised to be $5,500. Straight-line depreciation was used throughout the machine's life. Calculate the depreciation expense for the fourth year of the machine's useful life.
What will be an ideal response?
($75,000 - $6,000)/6 = $11,500 Original annual depreciation
$11,500 * 3 years = $34,500 Accumulated depreciation after 3 years
$75,000 - $34,500 = $40,500 Undepreciated cost after 3 years
($40,500 - $5,500)/7 years = $ 5,000 Annual depreciation in the 4th year
You might also like to view...
Which of the following is/are true?
a. The required accounting for trading securities and for securities classified as available-for-sale differs with respect to the income statement but not with respect to the balance sheet. b. The unrealized gain or loss on trading securities appears in net income in the period when fair value changes occur. c. The unrealized holding gain or loss on securities available-for-sale appears in other comprehensive income period by period, and its cumulative amount resides in the Accumulated Other Comprehensive Income account on the balance sheet. d. Users of the financial statements should be alert to this accounting effect in evaluating the profitability of firms with both trading securities and securities available-for-sale. e. all of the above
The various brands identified as purchase options to be considered during the alternative evaluation process are known as the consumer's
A. perceptive list. B. attribution list. C. sublimation set. D. evoked set. E. neutral list.
The final step in the decision-making process is to ________.
A. determine the criteria for the next decision B. analyze the process of allocating weights to the decision criteria C. evaluate the outcome of the decision D. implement the chosen alternative
The buffer overflow type of attack has been known since it was first widely used by the __________ Worm in 1988
A. Code Red B. Slammer C. Morris Internet D. Alpha One