question archive 1) On January 1, 2015, Jamacha Company purchased some equipment for $15,000
1) On January 1, 2015, Jamacha Company purchased some equipment for $15,000
Subject:AccountingPrice:3.87 Bought7
1) On January 1, 2015, Jamacha Company purchased some equipment for $15,000. The estimated salvage value and useful life are $3,000 and 4 years, respectively. On January 1, 2017, they company determines that the asset's remaining useful life is 3 year what is the revised depreciation expense for 2017 if the company uses the straight-line method?
$2, 250
$4,000
$2, 500
$2,000
2) Able Towing Company purchased a tow truck for $60,000 on January 1, 2012. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2014, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2014) and the salvage value to $2,000. What was the depreciation expense for 2014?
$6,000.
$4,800.
$15,000.
$12,100.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
1.
Original depreciation = (15000-3000)/4
=3000
Depreciation charged for two years = 3000*2 = 6000
Depreciation = (15000 - 3000 - 6000)/3 =2000
2.
Annual depreciation = (60000-12000)/10 = $4800
Net book value at the end of 2013 = 60000-4800*2 = $50400
Depreciation expense for 2014 = (50400-2000)/4 = $12,100
