Carpenters Company,a manufacturing company, acqired equipment. anuary 1,2017 for
ID: 2401887 • Letter: C
Question
Carpenters Company,a manufacturing company, acqired equipment. anuary 1,2017 for $5100. Estimated usei l fe ofthe eqimentn seven years and the estimated resioual vale wes $12000. 0n anary1 2020,afterusingthe equipment for thee yas, the tutal estimated e has been revised to nine total years Residual value remains unchanged Te company uses te trigh ie method f daoreciion Calol depreciation expense for 2020.Round anyintermediate calclations to decimal places, and your firal answer to the nearest dola $47429 $55,333 $48 571 56,667Explanation / Answer
Change in depreciation from revision of useful life
(Historical Cost - Accumulated Depreciation) - Salvage Value
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=
Depreciation
Expense
Remaining Useful Life
510000-213428.58-12000
for the year 2020 = ----------------------------------
6year
Depriciation expense = 47429$
working note:
accmalated dep = (historical cost-residual value/7years)*3yers
= (510000-12000)/7*3
= 213428.57$
remaining usefull life = 9-3
=6years
(Historical Cost - Accumulated Depreciation) - Salvage Value
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=
Depreciation
Expense
Remaining Useful Life