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

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

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

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

value of $160,000 on December 31, year 4, after recording

depreciation expense for year 4. The following information

was available on December 31, year 4.

Value of similar equipment for sale in market $140,000

Present value of estimated future cash flows discounted at 10% $130,000

Estimated undiscounted cash flows of equipment $135,000

At what amount should the equipment be presented on the

December 31, year 4 balance sheet

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

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