SHOW WORK!!!!! 2. On Jan. 2 nd of year 1, Moore Co. purchased a machine for $264
ID: 2373842 • Letter: S
Question
SHOW WORK!!!!!
2. On Jan. 2nd of year 1, Moore Co. purchased a machine for $264,000 and depreciated it by the straight-line method using an estimated life of 8 years with a zero salvage value. On Jan. 2nd of year 4 Moore determined that the machine had a useful life of 6 years from the date of acquisition and will have salvage value of $24,000. An accounting change was made in year 4 to reflect the additional data. The accumulated depreciation for this machine should have a balance at Dec. 31, year 4 of how much?
Explanation / Answer
By the straight line method
depreciation for every year=264000/8
=33000
after the first 3 yrs
book value=264000-3*33000=165000
From the new method in year 4
depreciation for every year=(165000-24000)/3=47000
Accumulated depreciation=total depreciation for first 3 years+total depreciation for year 4
=3*33000+47000=146000
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