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

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

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

Purchase of collating and stapling attachment $84,000

Installation of attachment 36,000

Replacement parts for overhaul of press 26,000

Labor and overhead in connection with overhaul 14,000

The overhaul resulted in a significant increase in production.

Neither the attachment nor the overhaul increased the estimated useful life of the press.

What amount of the above costs should be capitalized

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