Problem 7-72A (Algorithmic) Expenditures After Acquisition Pasta, a restaurant specializing in fresh pasta, installed a

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Problem 7 72a Algorithmic Expenditures After Acquisition Pasta A Restaurant Specializing In Fresh Pasta Installed A 1 (44.13 KiB) Viewed 26 times

Problem 7-72A (Algorithmic) Expenditures After Acquisition Pasta, a restaurant specializing in fresh pasta, installed a pasta cooker in early 2017 at a cost of $12,000. The cooker had an expected life of 5 years and a residual value of $600 when installed. As the restaurant's business increased, it became apparent that renovations would be necessary so the cooker's out could be increased. In January 2020, Pasta spent $5,200 to install new heating equipment and $4,100 to add pressure cooking capability Alter these renovations, Pasta estimated that the remaining useful life of the cooker was 10 years and that the residual value was now $1,500. Required: 1. Compute 1 year's straight-line depreciation expense on the cooker before the renovations. 2,280 per year 2. Assume that three full years of straight-line depreciation expense had been recorded on the cooker before the renovations were made. Compute the book value of the cooker immediately after the renovations were made. 17,060 X 3. Compute 1 year's straight-line depreciation expense on the renovated cooker 1,456 X per year Ch 7 Homework assignment take frame Feedback Check My Won 1. Straight-line depreciation allocate the depreciate cost over the use of the asset 2. Book value Cost Accumulated Depreciation Capital expenditures increase the store economic benefits of an asset by tending the increasing efficiency or improving the quality of the product 3 Compte depreciation expense ning the revised amounts for book value, unetut te, and residual value Check My Work 1 more Check My Work uses remaining < Previous Email Instructor SU