Consider the Following: A.Regent Corp. Bought a Machine Costing $22,400 on January 1

question 97

Essay

Consider the following:
a.Regent Corp. bought a machine costing $22,400 on January 1, 2014. A six-year life was estimated, and a $1,400 residual value was expected. The sum-of-the-years'-digits depreciation method was used.
Compute depreciation expense for 2018.
b.The company bought a machine costing $50,000 on January 1, 2014 A six-year life was expected, and residual value was estimated to be $8,000. The 150%-declining-balance depreciation method was used.
Compute depreciation expense for 2015.

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Definitions:

Market Price

The market rate at which an asset or service can currently be sold or bought.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Shares Outstanding

The total number of shares of stock that are held by all shareholders, including share blocks held by institutional investors and restricted shares.

Dividend Income

Income received from owning shares in a company, paid out from the company's earnings to its shareholders.