Question

7. On January 3, 2013, Munoz Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated residual value of $30,000. The depreciation applicable to this machinery was $65,000 for 2015, computed by the sum-of-the-years'-digits method. The acquisition cost of the machinery was A $360,000. C $420,000. B $390,000. D $468,000.

          7.
On January 3, 2013, Munoz Co. purchased machinery. The machinery has an
estimated useful life of eight years and an estimated residual value of $30,000. The
depreciation applicable to this machinery was $65,000 for 2015, computed by the
sum-of-the-years'-digits method. The acquisition cost of the machinery was
A
$360,000.
C
$420,000.
B $390,000.
D
$468,000.

7.
On January 3, 2013, Munoz Co. purchased machinery. The machinery has an
estimated useful life of eight years and an estimated residual value of 30,000. The
depreciation applicable to this machinery was65,000 for 2015, computed by the
sum-of-the-years'-digits method. The acquisition cost of the machinery was
A
360,000.
C420,000.
B 390,000.
D468,000.

Added by Gloria M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Madhur L

06/22/2023

Step 1

The sum of the years' digits is calculated by adding up the digits from 1 to the useful life of the machinery. In this case, the useful life is 8 years, so the sum of the years' digits is 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 = 36. Show more…

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7. A C = 30,000 180.000x 778 × 112 On January 3, 2013, Munoz Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated residual value of $30,000. The depreciation applicable to this machinery was $65,000 for 2015, computed by the sum-of-the-years'-digits method. The acquisition cost of the machinery was 8(8+1)=36 $360,000. $420,000. B D $390,000. $468,000. 2 $01000 On January3,2013,Munoz Co.purchased machinery.The machinery has an estimated useful life of eight years and an estimated residual value of $30,000.The depreciation applicable to this machinery was $65,000 for 2015.computed by the sum-of-the-years'-digits method.The acquisition cost of the machinery was 8(8+17-36 $360,000. $390,000. 2 $420,000. $468,000.