Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2001, fund company purchased three pieces of eq

In 2001, Fund Company purchased three pieces of equipment. The equipment is used for different...

60.1K

Verified Solution

Question

Accounting

image
In 2001, Fund Company purchased three pieces of equipment. The equipment is used for different purposes and hence different methods of amortization have been selected. Information concerning the equipment is summarized below: For the declining balance method, Fund Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000 hours. Actual hours of use in the first three yoars were: 2001,1,500;2002,4,800; and 2003,6,000. Instructions (a) Calculate the amount of accumulated amortization on each machine at December 31, 2003. (Round your answer to the nearest dollar.) (b) Early in 2003, the company reviews the remaining useful life and residual values for the machines. The useful life for Machine 1 is now expected to be a total of eight years. The residual value of machine 2 is revised to $20,000 and the total machine hours for Machine 3 is revised to 40,000 . What would be the amortization expense for the machines in 2003 ? (Hint: you have to calculate the balance left to be amortized and the remaining useful life; e.g., for machine 3 the number of hours expected excluding the first two years.) (Round your answer to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

find all solutions of the congruence x^2=60(mod77)

Advance Math
Q

2) discuss the current barriers to gene therapy.

Biology
Q

Sky Kitchens is the second largest airline caterer in the United States, providing nearly all the...

Basic Math
Q

1 yard 3 ft 12 in Convert 34 0 CM to Feet

Basic Math
Q

11 az a 160 B 7 Use decimal notation Give your answers to three decimal...

Basic Math
Q

High and low temperatures in degrees Fahrenheit for a particular city over the course of...

Statistics
Q

z x y e find az ou and az av The variables are restricted to...

Calculus
Q

19 Find the matrix A if 2 26 10 27 41434 if 4 e 10...

Algebra
Q

Which one of the following alternatives represents the correct amount of half-yearly interest...

Accounting
Q

9. Management is the art and science of decision making and leadership A. O Harold...

Accounting
Q

Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or...

Accounting
Q

Consider a monopolist that faces the following demand curve: P(Q) = a - b. Q....

Finance