A company's property records revealed the following information about its plant assets:Machine No.CostSalvage ValuePurchase DateEstimated LifeDepreciation Method1$82,000$8,0001/014 yearsStraight-line246,0003,6007/015 yearsDouble-declining-balanceCalculate the depreciation expense for each machine in Year 1 and Year 2 for the year ended December 31.Machine 1:  Year 1________  Year 2 ________Machine 2:  Year 1 ________ Year 2 ________

What will be an ideal response?


Machine 1:
Years 1 & 2: [($82,000 ? $8,000)/4] = $18,500

Machine 2:
Year 1: $46,000 × 40% * 6/12 = $9,200
Year 2: ($46,000 ? $9,200) * 40% = $14,720

* DDB depreciation rate = 1/5 * 2 = 40%

Business

You might also like to view...

All of the following can be employee payroll withholdings except

A) state income taxes. B) medical insurance premium payments. C) charitable contributions. D) federal unemployment tax.

Business

The use of shopping bots is associated with _____

a. want books (want slips) b. third-party logistics c. comparison shopping d. merchandise marts

Business

It is always clear what is ethical in a given situation

Indicate whether the statement is true or false

Business

Pappas Company owns 85 percent of Sunny Company's stock and 80 percent of Sibble Company's stock. All acquisitions were made at book value. The fair values of noncontrolling interests at the time of acquisition were equal to the proportionate share of the book values of the companies. The companies file a consolidated tax return each year and in 20X9 paid a total tax of $112,000. Each company is involved in a number of intercompany inventory transfers each period. Information on the companies' activities for 20X9 is as follows: 20X9 ReportedOperating Income20X8 IntercompanyProfit Realized in 20X920X9 Intercompany ProfitNot Realized in 20X9Pappas Company$155,000 $25,000 $15,000 Sunny Company 35,000  10,000  6,000 Sibble Company 60,000  28,000  12,000 Pappas Company does not

record income tax expense on income from subsidiaries because a consolidated tax return is filed.Based on the information provided, what amount of income tax expense should be assigned to Pappas Company? A. $62,000 B. $72,000 C. $66,000 D. $112,000

Business