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

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

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

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