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

Turtle’s policy for five year assets is to use the 200% double declining depreciation method for the first two years of the asset’s life, and then switch to the straight line depreciation method.

In its December 31, year 4 balance sheet, what amount should Turtle report as accumulated depreciation for equipment

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