Salvage value-using double the straight-line rate

Assignment Help Financial Accounting

Reference no: EM13824093

Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $85,120. The company estimated that the machine has a salvage value of $7,490. The machine is expected to be used for 62,110 working hours during its 8-year life.

Compute depreciation using the following methods in the year indicated.

Declining-balance using double the straight-line rate for 2014 and 2015.

Reference no: EM13824093

Questions Cloud

Capital ratio-how should the waiver be dated in this case : Given current economic conditions and individual operating results, companies may not comply fully with lender restrictions on debt and, thus, fail to meet one of the debt covenant requirements (e.g., to maintain a certain working capital ratio). Wha..

Prepare separate depreciation schedules-straight-line metod : Boscan Corporation purchased machinery on January 1, 2014, at a cost of $345,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $28,900. The company is considering different deprec..

What the balance of the allowance for doubtful accounts : Assume that during the second year of operations Mack’s Plumbing Supply Co. had sales of $4,100,000, wrote off $34,000 of accounts as uncollectible using the direct write-off method, and reported net income of $600,000. Determine what the balance of ..

Research the proper taxation of IRA distributions : Phyllis maintained an IRA account at the brokerage firm ABC. On February 11 of the current year, she requested a check for the balance of her account. She received the check made out in her name and deposited it the same day in a new IRA account at t..

Salvage value-using double the straight-line rate : Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $85,120. The company estimated that the machine has a salvage value of $7,490. The machine is expected to be used for 62,110 working hours during its 8-year life. Declining-bala..

Expected cost of direct materials purchased for month : Schuh, Inc. plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each unit requires 3 pounds of direct materials that can be purchased for $2 per pound. At the beginning of Month 1 there are 2,000 pounds of direct materials on hand. Sc..

Prepare differential analysis involving opportunity costs : On August 1, Matrix Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $150,000 of 6% U.S. Treasury bonds that mature in 16 years..

Describe control procedure-pretended or detected the fraud : Assume that Corey Jones, account payable clerk for Matthew Davidson Computers, stole $59,456 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the manes of the fictitious companies and cashed the checks at..

Percentage completion on profit-weighted average method : Tom Winthrop estimated that the units in the ending inventory in the final processing department were 30% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what wo..

User Account

All Pages