Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the units-of-production method.

The relevant factors in computing depreciation do not include:

The present value of an annuity is equal to the sum of the individual future values for each payment.

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,087 every six months. The life of these bonds is:

All of the following statements related to recording warranty expense are true except:

The first step in accounting for an asset disposal is to calculate the gain or loss on disposal.

The first step in accounting for an asset disposal is to calculate the gain or loss on disposal.

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the units-of-production method.

Plant assets can be disposed of by discarding, selling, or exchanging them.

Revenue expenditures, also called income statement expenditures, are additional costs of plant assets that do not materially increase the assets’ life or productive capabilities.