+ALA$Johnson Industries purchased a metal-working lathe for $36,000. This item will be used for business 90% of the time. Accountants elected to take a $15,000 section 179 deduction and utilize thespecial depreciation allowance of 50%.Prepare a depreciation schedule (in $) using MACRS.Round all dollar amounts to the nearest cent.MACRS Depreciation DeductionAccumulated DepreciationBook Value$+AJohnson IndustriesMACRS Depreciation Schedule-Metal-working LatheEnd of Year Basis for DepreciationRecovery Percent123$4$$A✓33.33%=44.45%=14.81%7.41% =A$$+AA+A+A+A+A

Johnson Industries MACRS Depreciation Schedule - Metal-working Lathe (Business Use)Note: Since the…

Answered: +A LA $ Johnson Industries purchased a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Johnson Industries purchased a metal-working lathe for $38,000. This item will be used for business 90% of the time. Accountants elected to take a $17,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation X Recovery Percent = MACRS Depreciation Deduction Accumulated Depreciation Book Value 1 X 33.33% = 2 X 44.45% = 3 X 14.81% = 4 X 7.41% = Step 1 The modified accelerated cost recovery system (MACRS) is the name given to tax rules for getting back, or recovering, through depreciation deductions the cost of property that is used in a trade or business. We must calculate the basis for depreciation, which is the cost of the lathe that will be used for depreciation purposes. This is based on the original cost of the lathe, the percentage of time it will be used for business…
[The following information applies to the questions displayed below.] NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Depreciation expense %3D Year Annual Depreciation Year-End Book Value Year 1 Year 2 Year 3 Year 4 Total II
Billings Corporation purchased a wood pulp mixer for $17,344. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260. Prepare a depreciation schedule using the sum-of-the-years' digits method. Year Total Depreciation ($) x Depreciation Rate Fraction 1 2 3 4 5 6 7 Need Help? $ $ $ $ $ $ $ Read It X X X X X X X Watch It Billings Corporation SYD Depreciation Schedule-Wood Pulp Mixer Master It 7/28 6/28 5/28 4/28 3/28 2/28 1/28 = || || Annual Depreciation ($) Accumulated Depreciation ($) $ $ $ $ $ $ $ $ $ $ $ $ $ $ Book Value ($) $17,808 (new) $ $ $ $ $ $ $
Check My Work Castle Corporation purchased a neon sign for $3,050. Its useful life is estimated as 6,500 hours, with a salvage value of $549. Prepare a UOP depreciation schedule based on the given annual usage, then enter the book value at the end of year 3 as your answer. Round all dollar amounts to the nearest cent.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 13,000 miles. A. Calculate the year one depreciation expense. _______________ B. What is the year one book value? __________________ Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the double-declining-balance depreciation method. C. Calculate the year one depreciation expense. _____________ D. What is the year one book value? _____________
Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $271,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Depreciation expense Year Annual Depreciation Year-End Book Value Year 1 Year 2 Year 3 Year 4 Total

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