Ask Question
BusinessBusiness
25 August, 06:24

On January 1, Year 1, Ballard company purchased a machine for $36,000. On January 1, Year 2, the company spent $11,000 to improve its quality. The machine had a $6,000 salvage value and a 6-year life, which are unchanged. Ballard uses the straight-line method. What is the book value of the machine on December 31, Year 4

+5
Answers (1)
  1. 25 August, 06:36
    0
    Book value of the machine at the end of year 4 is $20400

    Explanation:

    The year one depreciation is computed using the below straight depreciation method:

    depreciation=cost-residual value/useful life = ($36,000-$6,000) / 6=$5,000

    after year one book value=$36,000-$5,000=$31,000

    year two depreciation = ($31,000+$11,000-$6,000) / 5=$7200

    year 4 book value=$42,000 - ($7200*3) = $20400

    depreciation from year 2 onwards remain the same
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, Year 1, Ballard company purchased a machine for $36,000. On January 1, Year 2, the company spent $11,000 to improve its ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks
Answers (1)
At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $250. The credit sales for the period total $500,000.
Answers (1)
It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of?
Answers (1)
An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return?
Answers (1)
On October 1, 2021, Oberley Corporation loans one of its employees $39,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.
Answers (1)
New Questions in Business
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.).
Answers (1)
Name and describe the four basic types of fees and cost a franchise owner must pay
Answers (1)
Home » Business » On January 1, Year 1, Ballard company purchased a machine for $36,000. On January 1, Year 2, the company spent $11,000 to improve its quality. The machine had a $6,000 salvage value and a 6-year life, which are unchanged.
Sign Up Forgot Password?