1. Michigan Manufacturing uses the straight-line method of depreciation. A large fork-lift was purchased for $62,500. It has an estimated life of five years and an estimated scrap value of $2,500.
Compute the book value at the end of the first year.
$___________
2. Apex Electronics uses the straight-line method of depreciation. Electronic equipment costing $112,500 has an estimated life of ten years and an estimated scrap value of $7,250.
Compute the book value at the end of the third year.
$___________
3. Perry Processing, Inc. uses the units-of-production method of depreciation. A packaging machine costing $108,500 has 40,000 estimated hours of operation and an estimated scrap value of $12,500. It operated 4,200 hours in the first year.
Compute the book value at the end of the first year.
$___________
4. Cole Camping Company, Inc. uses the double-declining-balance method of depreciation. A piece of equipment costing $37,500 has an estimated life of five years and an estimated scrap value of $2,700.
Compute the book value at the end of the second year.
$_________
5. A retail store using sum-of-the-years-digits method of depreciation purchased equipment costing $36,000 and put it into use June 1. The equipment is expected to have a useful life of 10 years and an estimated resale value of $2,400.
Compute the book value at the end of the second year. Round depreciation amounts to the nearest dollar.
$____________
6. A publisher using the sum-of-the-years-digits method of depreciation purchased office furniture costing $36,000 and put it into use May 1. The furniture is expected to have a useful life of 10 years and an estimated resale value of $2,400.
Compute the book value at the end of the second year. Round depreciation amounts to the nearest dollar.
$_____________