Straight-line depreciation method

Assignment Help Financial Accounting

Reference no: EM133209470

On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,400. Woodstock also paid $1,200 for transportation and installation. The expected useful life of the machine is 5 years and the residual value is $5,200. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?

The December 31, 2020 book value is $21,840.

The December 31, 2021 accumulated depreciation balance is $21,840.

The annual depreciation expense is $7,280.

The December 31, 2019 book value is $34.320

Reference no: EM133209470

Questions Cloud

Debited to other expenses account : What is the amount that would be debited to the Other Expenses account, ignoring transportation charges and assume the operator distributes costs

What would be amount of the lease liability : What would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year?

Trust account was overdrawn : Explain how you would handle the situation when you discovered that a trust account was overdrawn.

Financial statements of kilat electronics berhad : Calculate the earnings per share for the year 2020. What does it mean by the earnings per share that you have calculated in (a)?

Straight-line depreciation method : If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?

Multiple potential issues in performance of roles : Accountants fulfill various roles in business and industry and they face multiple potential issues in performance of their roles.

Main source of either increase or decrease : Identify if they have an increase or decrease in cash for the most current year listed. Then identify the main source of either the increase or decrease.

Dividend paying stock and provide current stock price : Choose a dividend paying stock and provide the current stock price, the yearly dividend, and the dividend yield;

Major components of internal control system : Define the term "internal control" and identify the major components of an internal control system.

User Account

All Pages