At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $32,000 but had to be overhauled (at a cost of $2,480) before it could be installed (at a cost of $1,240) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $510 in each year.

At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $32,000 but had to be overhauled (at a cost of $2,480) before it could be installed (at a cost of $1,240) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $510 in each year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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