CHAPTER 8 HOMEWORK O Saved Apex Fitness Club uses straight-line depreciation for
ID: 2601503 • Letter: C
Question
CHAPTER 8 HOMEWORK O Saved Apex Fitness Club uses straight-line depreciation for a machine costing $19,800, with an estimated four year life and a $1,900 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,450 salvage value. 001 | points Required: 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. eBook Hint Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Compute the machine's book value at the end of its second year. Book Value at the End of Year 2: Cost 19,800 Accumulated depreciation 2 years Book value at point of revision Required 2 > CHAPTER 8 HOMEWORK O Seved Apex Fitness Club uses straight-line depreciation for a machine costing $19,800, with an estimated four year life and a $1,900 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,450 salvage value. Required: 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. points 00.1 || eBook Hunt Complete this question by entering your answers in the tabs below. Pant References Required 1 Required 2 Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Revised Depreciation (Years 3-5) Book value at point of revision Revised salvage value Remaining depreciable cost Years of life remaining Revised annual depreciation years (3-Explanation / Answer
Revisied depreciation:
Cost 19,800 Acc dep 2 years 10,850 book value at point of revision 8,950