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Lelu [443]
2 years ago
6

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $74,000. The machine would

replace an old piece of equipment that costs $19,000 per year to operate. The new machine would cost $9,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $31,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine
Business
1 answer:
atroni [7]2 years ago
7 0

Answer:

$7,400 per year

Explanation:

Data provided for computing the annual depreciation expense is here below:-

Automated bottling machine = $74,000

Useful life = 10 years

The calculation of annual depreciation expense is given below:-

Annual depreciation expense = Automated bottling machine ÷ Useful life

= $74,000 ÷ 10

= $7,400 per year

Therefore for computing the annual depreciation expense we simply divide the automated bottling machine by useful life.

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All new employees at Madison Lane Manufacturing are specifically trained to use the most efficient production methods. After ext
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The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these go
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direct material = $2,000

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Explanation:

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solution

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3 0
2 years ago
Kunkel, applebaum, and nelson focus on which type of financial support for caregivers?
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