Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. eckman company purchased equipment for $120,000 on

Eckman Company purchased equipment for $120,000 on January 1, 2016, and will use the double-declining-balance...

60.1K

Verified Solution

Question

Accounting

image
image
Eckman Company purchased equipment for $120,000 on January 1, 2016, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5- year life and a $6,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2018 will be Select one: a. $27,360 b. $28,800. c. $17,280. d. $16,416. A factory machine was purchased for $375,000 on January 1, 2017. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2017. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2017 would be Select one: a. $37,500. b. $60,000 C. $30,000 d. $75,000

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students