Show work or brief explanation do not just guess I will not give points otherwis

Question

Show work or brief explanation do not just guess I will not give points otherwise.

1.) When originally purchased, a vehicle had an estimated useful life of 9 years. The vehicle cost $26,000 and its estimated salvage value is $1,900. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 9 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals (round depreciation per year to a whole number):

$7,694 $6,594 $6,944 $6,694 $7,194


2.)
A company sold a machine that originally cost $125,000 for $70,000 cash. The accumulated depreciation on the machine was $55,000. The company should recognize a: $55,000 loss $70,000 gain $90,000 loss $0 gain or loss $90,000 gain

3.)
A company purchased property for $130,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $45,000, and the parking lot at $18,000. The value of the land to be recorded in the accounting records is (rounded): $45,000 $47,561 $130,000 $0 $47,786

4)
A company paid $190,000, plus a 9% commission and $6,500 in closing costs for a property. The property included land appraised at $90,000, land improvements appraised at $36,000, and a building appraised at $54,000. What should be the allocation of this property's costs in the company's accounting records? Land $42,720; Land Improvements, $64,080; Building, $106,800 Land $106,800; Land Improvements, $42,720; Building, $64,080 Land $95,000; Land Improvements, $38,000; Building, $57,000 Land $90,000; Land Improvements; $36,000; Building; $54,000 Land $38,000; Land Improvements, $57,000; Building, $95,000
5)
A company purchased a rope braiding machine for $188,000. The machine has a useful life of 8 years and a residual value of $13,500. It is estimated that the machine could produce 770,000 units of climbing rope over its useful life. In the first year, 104,000 units were produced. In the second year, production increased to 107,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Do not round the depreciation per unit. Round your final answer to a whole dollar amount. $24,249 $26,125 $23,569 $28,001 $27,216

6) A company purchased a POS cash register on January 1 for $5,300. This register has a useful life of 10 years and a salvage value of $600. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? Round all calculations to whole dollar amounts
$1,060 $470 $940 $752 $848

Explanation / Answer

Hi,

Please find the answers as follows:

Part 1:

Depreciation per Year with 9 Years as Useful Life = (26000 %u2013 1900)/9 = 2678

Depreciation for first 4 Years = 2678*4 = 10712

Book Value after Four Years = 24100 %u2013 10712 = 13388

Depreciation Per Year with 6 Years as Useful Life = 13388/2 = 6694 (because remaining useful life is 2 years now)

Depreciation for Year 5 would be 6694

Answer is 6694

Part 2:

Book Value of Machine = 125000 - 55000 = 70000

Gain or Loss on Sale = 70000 (Book Value) - 70000 (Cash) = 0

Answer is 0.

Part 3:

Value of Land = 130000*45000/(60000 + 45000 + 18000) = 47561

Answer is 47561

Part 4:

Land = (190000 + 190000 +.09 + 6500)*90000/(90000 + 54000 + 36000) = 106800

Land Improvements = (190000 + 190000 +.09 + 6500)*36000/(90000 + 54000 + 36000) = 42720

Building = (190000 + 190000 +.09 + 6500)*54000/(90000 + 54000 + 36000) = 64080

Answer is Land $106,800; Land Improvements, $42,720; Building, $64,080

Part 5:

Depreciation for Second Year = 188000*107000/770000 = 26125

Answer is 26125.

Part 6:

Depreciation Per Year = (5300 - 600)/10 = 470

Depreciation Rate = 470/4700*100 = 10%

Depreciation Rate (Double Declining Method) = 10*2 = 20%

Depreciation for Year 1 = 5300*.20 = 1060

Depreciation for Year 2 = (5300 - 1060)*.20 = 848

Answers is 848

Thanks.

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