On July 1, 2009, XYZ Company purchased a truck for $80,000. The truck had an estimated life of 7 years,an estimated salvage value of $5,000, and was expected to be driven for a total of 125,000 miles overits life. During 2009, the truck was driven 9,400 miles.
Assume the company employs the units of production method of depreciation. Calculate the amount ofdepreciation expense related to the truck shown in the company's 2009 income statement. Do not use decimals in your answer.
onJanuary 1, 2002, Top Flight Company purchased a machine for $68,000. The estimated life ofthe machine was 5 years, and the estimated salvage value was $5,000.
Assume the company employs the sum-of-the-years-digits' method of depreciation. Calculate thedepreciation expense recorded on the machine in 2004. Do not use decimals in your answer.
XYZ Company purchased a new machine on January 1, 2002 for $84,000. The machine had a 5-yearlife and a $1,000 salvage value assigned to it.
Calculate the amount of accumulated depreciation on the machine shown in the December 31, 2004balance sheet assuming the company uses the double-declining balance depreciation method. Donot use decimals in your answer.
On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned anestimated life of 10 years and a salvage value of $10,000. On January 1, 2005, ABC Companydecided the life of the equipment should be revised from 10 to 15 years with a salvage value of $4,000 at the end of the 15 years.
Calculate the book value of the equipment at December 31, 2009 assuming ABC Company usesthe straight line depreciation method. Do not use decimals in your answer.On June 1, 2004, XYZ Company paid $360,000 to purchase land, building, and equipment. The marketvalue of these assets on that date were: land $90,000; building $260,000; equipment $50,000.Before the facilities could be used, XYZ Company had to spend $4,000 to put the equipment inworking order and $15,000 to renovate the building. The equipment was then estimated to have auseful life of 10 years with a $7,000 salvage value. The equipment will be depreciated usingthe straight-line method.OnDecember 31, 2010, XYZ Company sold the equipment for $26,000 cash.
Calculate the gain recorded on the sale. Enter your answer as a number (i.e., 2,000). Do not usea minus sign, decimals, or type the word gain after your answer.
XYZ Company purchased a new machine on January 1, 2011 and assigned it an 8-year life with a salvage value
(note the amount of the salvage value is intentionally omitted from the problem). Using the straight-line
depreciation method, the book value of the machine at December 31, 2013 was $47,250. Had XYZ Company used
double-declining balance depreciation, the depreciation expense recorded on the machine in 2012 would have
been $13,500.
Calculate the salvage value assigned to the machine. Do not use decimals in your answer.