Question 2 Cody Enterprises purchased equipment for 64000 80

Question 2 Cody Enterprises purchased equipment for $64,000, $800 shipping, and $5000 foundation/installation. The equipment is estimated to have a residual value of $6,000 at the end of its 5-year useful life. Using the straight-ine method, what is the book value of the equipment at the end of its third full year of use? $28,400 $31,520 O $25,520 $22,120

Solution

As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cost of Equipment = 64000 + 800 + 5000                 69,800.00 Residual Value                   6,000.00 Time in Years                            5.00 Depreciation per year = (69,800 - 6,000)/5                 12,760.00 Depreciation for 3 Years = 12,760*3                 38,280.00 Book Value of equipment = 69,800 - 38,280                 31,520.00 Q5 Patents, trademarks and franchises Q8 Cost of Machine               400,000.00 Residual Value                 20,000.00 Expected production in units           2,000,000.00 Depreciation per unit = (400,000-20,000)/2000,000                            0.19 Units made during the period               400,000.00 Depreciation expense = 400,000*.19                 76,000.00