131. A company purchased equipment valued at $825,000 on January 1. The equipment has an estimated useful life of seven years or 6million units. The equipment is estimated to have a salvage value of...





131. A company purchased equipment valued at $825,000 on January 1. The equipment has an estimated useful life of seven years or 6million units. The equipment is estimated to have a salvage value of $35,000. Assuming the double-declining-balance method of depreciation, what is depreciation for the second year?







132. A company purchased equipment valued at $825,000 on January 1. The equipment has an estimated useful life of seven years or 6million units. The equipment is estimated to have a salvage value of $35,000. Assuming the units of production method of depreciation, what is the annual depreciation for the second year if .5 million units were produced?







133. A company purchased equipment valued at $825,000 on January 1. The equipment has an estimated useful life of seven years or 6million units. The equipment is estimated to have a salvage value of $35,000. Assuming the straight-line method of depreciation, what is the book value at the end of the second year?







134. Beauty Company purchased a machine valued at $565,000 on September 1. The equipment has an estimated useful life of eight years or 5.5 million units. The equipment is estimated to have a salvage value of $48,300. Assuming the double declining balance method of depreciation is used, what is depreciation expense that needs to be recorded at the end of the second year?







135. On July 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced.



Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses:



a. The straight-line method of depreciation.



b. The units-of-production method of depreciation.



c. The double-declining balance method of depreciation.









May 15, 2022
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