Compute the annual depreciation on the new equipment, Cost Accounting

Assignment Help:

Goldman Corporation bought a machine on June 1, 2010, for $44,838, f.o.b. the place of manufacture. Freight to the point where it was set up was $282, and $705 was expended to install it. The machine's useful life was estimated at 10 years, with a salvage value of $3,525. On June 1, 2011, an essential part of the machine is replaced, at a cost of $3,807, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy.

On June 1, 2014, the company buys a new machine of greater capacity for $49,350, delivered, trading in the old machine which has a fair value and trade-in allowance of $28,200. To prepare the old machine for removal from the plant cost $106, and expenditures to install the new one were $2,115. It is estimated that the new machine has a useful life of 10 years, with a salvage value of $5,640 at the end of that time. The exchange has commercial substance.

Assuming that depreciation is to be computed on the straight-line basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June 1, 2014. (Round answer to 0 decimal places, e.g. $45,892.)

 


Related Discussions:- Compute the annual depreciation on the new equipment

Calculate the amount of gross profit, Samuel Construction Company engaged i...

Samuel Construction Company engaged in a contract to construct a building on 1 July 2011 with completion of the contract by the 30 June 2014.  The contract price amounted to a tota

Provisions or estimated liabilities, Where the liabilities are identified b...

Where the liabilities are identified but the amounts cannot be precisely found, we estimate the liability and give for it as a liability. A common illustration is income tax payabl

Activity based costing or abc, Activity Based Costing or ABC Absorptio...

Activity Based Costing or ABC Absorption costing shows to be relatively straightforward way of adding overhead costs to units of production utilizing, more often than not, a v

Capital, Capital We have seen previous in this section that the fundame...

Capital We have seen previous in this section that the fundamental accounting equality states as: Assets = liabilities + owners equity. From the illustration of balanc

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Definitions of manufacturing concepts interstate, 3. Definitions of manufac...

3. Definitions of manufacturing concepts  Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:  Materials and supplies us

Disadvantages of using standard costs, Purposes of standard cost accounting...

Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos

Find out the memorandum reconciliation account, Find Out the Memorandum Rec...

Find Out the Memorandum Reconciliation Account The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Pr

Overhead cost, what is overhead cost classfication of cost overhead

what is overhead cost classfication of cost overhead

Fixed costs, Fixed Costs Are costs such do not change along with of th...

Fixed Costs Are costs such do not change along with of the level of output? It is also named as autonomous cost, as it stays the similar irrespective of the activity level as

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd