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.
$$\begin{array} { | l | r | c | r | } \hline\text {}&\text {}&&\text {Estimated residual}\\ \text { Item } & { \text { Cost } } & \text { Estimated useful life}& { \text { value } } \\ \hline\text { Lathe } & \$ 4,500,000 & 20 \text { years }&150,000 \\\hline \text { Luilding } & 35,000,000 & 10 \text { years } &800,000 \\\hline \text { Earth-moving truck } & 450,000 & 10 \text { years } & 15,000 \\\hline \text { Electric turbine } & 6,000,000 & 6 \text { years } & 420,000 \\\hline \text { Stamping machine } & 25,000,000 & 6 \text { years } & 4,000,000\\\hline\end{array}$$ Required:
For each asset, calculate the depreciation expense for the last year of the assets' useful lives.
Show your calculations.

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Definitions:

Food-deprived Rats

Rodents that have been subjected to a period without food to study various behaviors or physiological responses.

Reinforcers

Stimuli that increase the probability of a response when they follow that response, a key concept in behaviorism.

Respondent Behavior

A type of behavior that is elicited as an automatic response to a certain stimulus without the organism engaging in any conscious decision making.

Operant Behavior

A method of learning that employs rewards and punishments for behavior, emphasizing the strength of behaviors as a result of their consequences.