Broadway Ltd. purchased equipment on January 1, 2019, for $900,000, estimating a six-year useful life and...
Broadway Ltd. purchased equipment on January 1, 2019, for $900,000, estimating a six-year useful life and no residual value. In 2019 and 2020, Broadway depreciated the asset using the straight-line method. In 2021, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2021 on this equipment? (Do not round your depreciation rate.)
Multiple Choice
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$150,000.
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$120,000.
-
$240,000.
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$300,000.
Homework Answers
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Broadway Ltd. purchased equipment on January 1, 2019, for
$900,000, estimating a six-year useful life and...
Broadway Ltd. purchased equipment on January 1, 2016, for $600,000, estimating a 6-year useful life and...
Broadway Ltd. purchased equipment on January 1, 2016, for $600,000, estimating a 6-year useful life and no residual value. In 2016 and 2017, Broadway depreciated the asset using the straight-line method. In 2018, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2018 on this equipment? (Do not round your depreciation rate.)
Murgatroyd Co. purchased equipment on January 1, 2016, for $520,000, estimating a four-year useful life and...
Murgatroyd Co. purchased equipment on January 1, 2016, for $520,000, estimating a four-year useful life and no residual value. In 2016 and 2017, Murgatroyd depreciated the asset using the sum-of-years'-digits method. In 2018, Murgatroyd changed to straight-line depreciation for this equipment. What depreciation would Murgatroyd record for the year 2018 on this equipment? (Do not round your depreciation rate.) Multiple Choice $ 78,000. $130,000. $156,000. None of these answer choices are correct.
Rhonda Company purchased equipment on January 1, Year 1, for $420,000, estimating a four-year useful life...
Rhonda Company purchased equipment on January 1, Year 1, for $420,000, estimating a four-year useful life and no residual value. In Year 1 and 2, Rhonda depreciated the asset using the sum-of-years'-digits method and the book value at the end of Year 2 was $126,000. At the beginning of Year 3, Rhonda changed to straight-line depreciation for this equipment. What depreciation would Rhonda record for the Year 3 on this equipment? (Round your answer to the nearest whole dollar.)
Knowledge Check 01 Rhonda Company purchased equipment on January 1, Year 1, for $420,000, estimating a...
Knowledge Check 01 Rhonda Company purchased equipment on January 1, Year 1, for $420,000, estimating a four-year useful life and no residual value. In Year 1 and 2, Rhonda depreciated the asset using the sum-of-years'-digits method and the book value at the end of Year 2 was $126,000. At the beginning of Year 3, Rhonda changed to straight-line depreciation for this equipment. What depreciation would Rhonda record for the Year 3 on this equipment? (Round your answer to the nearest...
Tatsuo Corporation purchased farm equipment on January 1, 2019, for $280,000. In 2019 and 2020, Tatsuo...
Tatsuo Corporation purchased farm equipment on January 1, 2019, for $280,000. In 2019 and 2020, Tatsuo depreciated the asset on a straight-line basis with an estimated useful life of five years and a $90,000 residual value. In 2021, due to changes in technology, Tatsuo revised the residual value to $30,000 but still plans to use the equipment for the full five years. What depreciation would Tatsuo record for the year 2021 on this equipment? Multiple Choice $52,000. $58,000. $50,000. $28,000.
On January 4, 2019, Columbus Company purchased new equipment for $693,000 that had a useful life...
On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer...
Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. 2. Prepare the year-end journal entry for depreciation in 2021. Assume that the company uses the sum-of-the-years' -digits method...
On July 2, 2019, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful...
On July 2, 2019, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful life of six years and an estimated residual value of $30,000. Depreciation is taken for the portion of the year the asset is used. The asset is a Class 8 asset with a maximum CCA rate of 20%. Vicuna has a December year end. Instructions a) Complete the schedule below by determining the depreciation expense/CCA and year-end book values/UCC for 2019 and 2020 using...
Question 17 (1 point) An activity-based method is most often used to allocate the cost of...
Question 17 (1 point) An activity-based method is most often used to allocate the cost of natural resources over its useful life because: This method generally results in the highest amount of assets in the earlier years. This is the simplest method, and natural resource activity is hard to estimate. The usefulness of natural resources generally is directly related to the amount of the resources extracted. This method generally results in the highest amount of assets in the later years....
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,120,000 $6,120,000 Year-End Book Value $6,120,000 $6,120,000...
Knowledge Check 01 Rhonda Company purchased equipment on January 1, Year 1, for $420,000, estimating a four-year useful life and no residual value. In Year 1 and 2, Rhonda depreciated the asset using the sum-of-years'-digits method and the book value at the end of Year 2 was $126,000. At the beginning of Year 3, Rhonda changed to straight-line depreciation for this equipment. What depreciation would Rhonda record for the Year 3 on this equipment? (Round your answer to the nearest...
On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
Question 17 (1 point) An activity-based method is most often used to allocate the cost of natural resources over its useful life because: This method generally results in the highest amount of assets in the earlier years. This is the simplest method, and natural resource activity is hard to estimate. The usefulness of natural resources generally is directly related to the amount of the resources extracted. This method generally results in the highest amount of assets in the later years....
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,120,000 $6,120,000 Year-End Book Value $6,120,000 $6,120,000...
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