The following is available for a company’s machine on January 1, Year 3:
| Cost | 38,000 | Method | Straight-line |
| Salvage Value | 6,000 | Purchased | January 1, Year 1 |
| Accumulated Depreciation | 8,000 | Expected Life | 8 years |
On January 1, Year 3 a major overhaul was made on the machine costing $5,000 and the total estimated useful life was extended 4 years. Depreciation expense for year the year ending December 31, Year 3 is:
| Click Here to View All Chapter 10 Problems at Once | View | ||
| 1 | The Effect of Amortization | Easy | |
| 2 | The Effect of Capital vs Revenue Expenditures | Easy | |
| 3 | Calculating Depreciation using DDB | Moderate | |
| 4 |
Change in Depreciation
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Moderate | |
| 5 | Failure to Record Depreciation | Moderate |
| 1 | Acquisition Cost of Assets | 13:23 | |
| 2 | Lump Sum Purchases | 6:01 | |
| 3 | What is Depreciation? | 11:23 | |
| 4 | Straight Line Depreciation | 4:33 | |
| 5 | Double Declining Balance | 13:58 | |
| 6 | Units of Production | 3:43 | |
| 7 | Partial Year Depreciation | 5:50 | |
| 8 | Capital vs. Revenue Expenditures | 10:42 |