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Listed Below Are Several Long-Lived Assets Owned by X Corp

question 46

Essay

Listed below are several long-lived assets owned by X Corp. The company uses straight-line depreciation. Assume in all cases that the asset's first and last years are full years, and that all assumptions and estimates used to derive depreciation remain unchanged throughout the assets' useful lives.
Estimated residual Item  Cost  Estimated useful life value  Lathe $4,500,00020 years 150,000 Luilding 35,000,00010 years 800,000 Earth-moving truck 450,00010 years 15,000 Electric turbine 6,000,0006 years 420,000 Stamping machine 25,000,0006 years 4,000,000\begin{array} { | l | r | c | r | } \hline\text {}&\text {}&&\text {Estimated residual}\\ \text { Item } & { \text { Cost } } & \text { Estimated useful life}& { \text { value } } \\ \hline\text { Lathe } & \$ 4,500,000 & 20 \text { years }&150,000 \\\hline \text { Luilding } & 35,000,000 & 10 \text { years } &800,000 \\\hline \text { Earth-moving truck } & 450,000 & 10 \text { years } & 15,000 \\\hline \text { Electric turbine } & 6,000,000 & 6 \text { years } & 420,000 \\\hline \text { Stamping machine } & 25,000,000 & 6 \text { years } & 4,000,000\\\hline\end{array} Required:
For each asset, calculate the depreciation expense for the last year of the assets' useful lives.
Show your calculations.


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