years’-digits method. The residual value is expected to be $3
million. At the beginning of 2018, Irwin decided to change to the
straight-line method.
Ignoring income taxes, prepare the journal entry relating to the
machine for 2018.(If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field. Enter your answers in millions rounded to 1 decimal
place (i.e., 5,500,000 should be entered as 5.5).)
![Brief Exercise 20-4 Change in depreciation methods [LO20-3] Irwin, Inc., constructed a machine at a total cost of $25 million](http://img.homeworklib.com/questions/a584d890-6f25-11ea-afde-69553c181fd8.png?x-oss-process=image/resize,w_560)
Homework Answers
Answer:
| Date | Account Title and Explanation | Debit ($) | Credit ($) |
| Depreciation | $1,600,000 | ||
| Accumulated depreciation | $1,600,000 | ||
| (To record adjusting depreciation entry) |
Working Notes:
Average number of years = n(n=1)/2 = (10(11))/2 = (110/2) =
55
SYD depreciation = (Number of years completed / Average number of
year *(Total cost - Residual value))
=(10+9+8/55)*($25 million - $3 million)
=0.490909 * $22 million
=10.8 million
Calculate annual straight line depreciation 2018-2024
| Particulars | Amount ($ in millions) |
| Machine cost | $25 |
| Less: Accumulated depreciation | $10.8 |
| Un depreciated cost Jan 1 2016 | $14.2 |
| Estimated residual value | $3 |
| Depreciation over remaining 7 years | $11.2 |
| Divide: Remaining years | 7 years |
| Annual straight line depreciation 2018-2024 | $1.6 million |
Add Answer to:
years’-digits method. The residual value is expected to be $3
million. At the beginning of 2018,...
Irwin, Inc. constructed a machine at a total cost of $45 million. Construction was completed at...
Irwin, Inc. constructed a machine at a total cost of $45 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $1 million. At the beginning of 2021, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021....
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at...
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at...
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
Irwin, Inc. constructed a machine at a total cost of $44 million. Construction was completed at...
Irwin, Inc. constructed a machine at a total cost of $44 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2021, Irwin decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021....
Ch20 Homework i Hel Saved 2 Irwin, Inc., constructed a machine at a total cost of...
Ch20 Homework i Hel Saved 2 Irwin, Inc., constructed a machine at a total cost of $57 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method. 16.66 gnoring income taxes, prepare the journal...
Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018...
Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The inventory as reported at the end of 2017 using LIFO would have been $13 million higher using FIFO. Retained earnings reported at the end of 2016 and 2017 was $233 million and $253 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $243 million and $265 million, respectively. 2017 net...
Irwin, Inc., constructed a machine at a total cost of $51 million. Construction was completed at...
Irwin, Inc., constructed a machine at a total cost of $51 million. Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $3 million. At the beginning of 2016, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2016.
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUS) representing 18 million of its...
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUS) representing 18 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $5.40 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. to 6. Prepare the appropriate...
A company reports pretax accounting income of $50 million, but because of a single temporary difference, taxable income is $52 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journa
A company reports pretax accounting income of $50 million, but because of a single temporary difference, taxable income is $52 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.Prepare the appropriate journal entry to record income taxes.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary dif...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: $ in Carrying Tax Amount Basis $134 $97 illions) Future Taxable Deductible) Amount $ 37 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency (32) b. No temporary differences existed at the beginning of 2018 c. Pretax accounting income was $207 million and taxable income was $145 million...
Irwin, Inc. constructed a machine at a total cost of $45 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $1 million. At the beginning of 2021, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021....
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
Irwin, Inc., constructed a machine at a total cost of $32 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2018....
Irwin, Inc. constructed a machine at a total cost of $44 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $2 million. At the beginning of 2021, Irwin decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021....
Ch20 Homework i Hel Saved 2 Irwin, Inc., constructed a machine at a total cost of $57 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method. 16.66 gnoring income taxes, prepare the journal...
Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The inventory as reported at the end of 2017 using LIFO would have been $13 million higher using FIFO. Retained earnings reported at the end of 2016 and 2017 was $233 million and $253 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $243 million and $265 million, respectively. 2017 net...
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUS) representing 18 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $5.40 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. to 6. Prepare the appropriate...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: $ in Carrying Tax Amount Basis $134 $97 illions) Future Taxable Deductible) Amount $ 37 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency (32) b. No temporary differences existed at the beginning of 2018 c. Pretax accounting income was $207 million and taxable income was $145 million...
Most questions answered within 3 hours.
-
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 27 seconds ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 6 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 10 minutes ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 1 hour ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 1 hour ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 1 hour ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 1 hour ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 1 hour ago -
Why are polymers not typically casted into products?
asked 1 hour ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 2 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 1 hour ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 1 hour ago