Newell Company purchased a machine with alist price of $96,000. They were given a 10%discount by the manufacturer. They paid $600for shipping and sales tax of $4,500. Newellestimates that the machine will have a useful lifeof 10 years and a salvage value of $30,000. IfNewell uses straight-line depreciation, annualdepreciation will bea.$6,150b.$6,108c. $9,150d.$5,640A plant asset was purchased on January 1 for$75,000 with an estimated salvage value of $15,000at the end of its useful life. The current year'sDepreciation Expense is $5,000 calculated on thestraight-line basis and the balance of theAccumulated Depreciation account at the end of theyear is $25,000. The remaining useful life of theplant asset isa.15 years.b.12 years.c. 5 years.d.7 years.On January 1, 2021, the Hermann Company generalledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value. Compute the revised annual depreciation.$10,200Jack's Copy Shop bought equipment for $150,000 on January 1, 2020. Jack estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2021, Jack decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2021?a.$50,000.b.$20,000.c. $25,000.d.$33,333.Torrey Company had the following assets on January 1, 2020.Item Cost PurchaseDate Useful Life(in years) Salvage ValueMachinery $71,000 Jan. 1, 2010 10 $ -0-Forklift 30,000 Jan. 1, 2018 5 -0-Truck 33,400 Jan. 1, 2016 8 3,000All depreciation was up to date as of December 31, 2019.During 2020, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June30 for $12,000. The truck was discarded on December 31. Jan. 1 Accumulated Depreciation 71,000Equipment 71,000June 30 Depreciation Expense 3,000Accumulated Depreciation 3,000June 30 Cash 12,000Accumulated Depreciation 15,000Loss on Disposal of Equipment 3,000Equipment 30,000Dec. 31 Depreciation Expense 3,800Accumulated Depreciation 3,800Dec. 31 Accumulated Depreciation 19,000Loss on Disposal of Equipment 14,400Equipment
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