Final_Exam_Review_Problems

Final_Exam_Review_Problems - P10-2B. In recent years,...

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P10-2B. In recent years, Escobar Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning the machines is summarized below. Cost Salvage Value $86,000 100,000 78,000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2008, 1,000; 2009, 4,500; and 2010, 5,000.
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Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2008. (b) If machine 2 had been purchased on April 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2006 and (2) 2007? E10-8. Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2008. His
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This note was uploaded on 07/06/2010 for the course ACCT 2001 taught by Professor Lowe during the Spring '08 term at LSU.

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Final_Exam_Review_Problems - P10-2B. In recent years,...

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