estimated to have a 4-year useful life and a residual (salvage) value of $18,000. The double-

declining-balance method is to be used. The amount of depreciation to be reported for the current

year is

would the use of an accelerated depreciation method instead of the straight-line method affect the

gain or loss on the sale of the fixed plant asset

cash in excess of its net book value is as follows:

On January 2, year 4, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $24,000. An accounting change was

made in year 4 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, year 4, of

The cost of the machine was $63,000, of which $20,000 was given as a down payment. The

remainder was borrowed at 12% annual interest. Additional costs included $2,500 for shipping,

$4,000 for installation, $3,000 for testing, and $1,290 of interest on the borrowed funds. How much

should be reported for this acquisition in the machine account on Lambert Company's statement of

financial position as of November 30

machine produced 1,000 units, of which 600 were sold. There was no work-in-process inventory at

the beginning or at the end of the year. Installation charges of $300 and delivery charges of $200

were also incurred. The machine is expected to have a useful life of five years with an estimated

salvage value of $1,500. Pearl uses the straight-line depreciation method. The original cost of the

machinery to be recorded in Pearl's books is