What is the total amount of depreciation expense

Reference no: EM131880871

Question: 1) Boone Company purchased a piece of machinery by paying $5,000 cash. In addition to the purchase price, the company incurred $100 freight charges. The machine has an estimated useful life of 5 years and will require $125 insurance over that period. Boone expects the machine to have a salvage value of $600 at the end of its useful life. Boone uses straight-line depreciation.

How much should Boone Company record as the cost of the machine?

2) Boone Company purchased a piece of machinery by paying $5,000 cash. In addition to the purchase price, the company incurred $100 freight charges. The machine has an estimated useful life of 5 years and will require $125 insurance over that period. Boone expects the machine to have a salvage value of $600 at the end of its useful life. Boone uses straight-line depreciation.

What is the total amount of depreciation expense that Boone can take over the life of the asset?

3) Boone Company purchased a piece of machinery by paying $5,000 cash. In addition to the purchase price, the company incurred $100 freight charges. The machine has an estimated useful life of 5 years and will require $125 insurance over that period. Boone expects the machine to have a salvage value of $600 at the end of its useful life. Boone uses straight-line depreciation.

What is the depreciation expense for year 1?

4) Boone Company purchased a piece of machinery by paying $5,000 cash. In addition to the purchase price, the company incurred $100 freight charges. The machine has an estimated useful life of 5 years and will require $125 insurance over that period. Boone expects the machine to have a salvage value of $600 at the end of its useful life. Boone uses straight-line depreciation.

What is the book value of the machine at the end of year 2?

5) On January 1, 2013, Modern Designs purchases equipment at a cost of $6,300. The equipment will have an estimated useful life of 3 years or 30,000 hours. The equipment will have a $600 salvage value at the end of its life.

If Modern Designs uses straight-line depreciation, what is the depreciation expense for the year ending December 31, 2014?

Reference no: EM131880871

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