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The initial cost of a piece of construction equipment is $4000 000. It has useful life...
Question 2 The initial cost of a piece of construction equipment is $4000 000. It has...
Question 2 The initial cost of a piece of construction equipment is $4000 000. It has useful life of 10 years. The estimated salvage value of the equipment at the end of useful life is $600 000. Calculate the depreciation charge and book value of the construction equipment using straight-line method and declining balance depreciation method in years 1, 4, 6, 9 and 10.
4) The pertinent information about a piece of construction equipment follows: $75, 000 20 Years Cost...
4) The pertinent information about a piece of construction equipment follows: $75, 000 20 Years Cost Estimated Useful Life $10, 000 2015/7/1 Residual Salvage) Value Placed in service Compute the first two years depreciation using the Double-Declining Balance method assuming a year end of 12/31 $ Year 1 $ Year 2
A piece of construction equipment is purchased for $ 110,000 and has an estimated residual /...
A
piece of construction equipment is purchased for $ 110,000 and has
an estimated residual / salvage value of $ 10,000 at the end of a 7
year recovery period. Prepare a Depreciation Schedule using:
A.
Straight-Line Method
B.
Sum-of-the-Years Method
C.
200% Declining Balance Method
****please use the template in the pic to do the problem
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...
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $9,911,000. The useful life...
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $9,911,000. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $26,750. a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch...
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $7,304,400. The useful life...
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $7,304,400. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $61,090. A. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). B. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch...
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...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $195,000. 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 $4,680,000 $4,680,000 Less: Accumulated Depreciation Year-End Book Value Depreciation Expense...
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $5,654,500. The useful life...
On August 3, Cinco Construction purchased
special-purpose equipment at a cost of $5,654,500. The useful life
of the equipment was estimated to be eight years, with an estimated
residual value of $47,140.
b. Compute the depreciation expense to be
recognized each calendar year for financial reporting purposes
under the 200 percent declining-balance method (half-year
convention) with a switch to straight-line when it will maximize
depreciation expense.
Compute the depreciation expense to be recognized each calendar
year for financial reporting purposes...
Find the equivalent uniform annual cost 3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000,...
Find the equivalent uniform annual cost
3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000, an estiinat nomic life of 8 years, and an estimated salvage value of $10,000. Annual mainte- nance will anount to $600 per year and periodic overhauls costing $1.,000 each will occur at the end of the second, fourth, and sixth years.
3. Using an interest rate of...
Question 2 The initial cost of a piece of construction equipment is $4000 000. It has useful life of 10 years. The estimated salvage value of the equipment at the end of useful life is $600 000. Calculate the depreciation charge and book value of the construction equipment using straight-line method and declining balance depreciation method in years 1, 4, 6, 9 and 10.
4) The pertinent information about a piece of construction equipment follows: $75, 000 20 Years Cost Estimated Useful Life $10, 000 2015/7/1 Residual Salvage) Value Placed in service Compute the first two years depreciation using the Double-Declining Balance method assuming a year end of 12/31 $ Year 1 $ Year 2
A
piece of construction equipment is purchased for $ 110,000 and has
an estimated residual / salvage value of $ 10,000 at the end of a 7
year recovery period. Prepare a Depreciation Schedule using:
A.
Straight-Line Method
B.
Sum-of-the-Years Method
C.
200% Declining Balance Method
****please use the template in the pic to do the problem
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...
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...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $195,000. 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 $4,680,000 $4,680,000 Less: Accumulated Depreciation Year-End Book Value Depreciation Expense...
On August 3, Cinco Construction purchased
special-purpose equipment at a cost of $5,654,500. The useful life
of the equipment was estimated to be eight years, with an estimated
residual value of $47,140.
b. Compute the depreciation expense to be
recognized each calendar year for financial reporting purposes
under the 200 percent declining-balance method (half-year
convention) with a switch to straight-line when it will maximize
depreciation expense.
Compute the depreciation expense to be recognized each calendar
year for financial reporting purposes...
Find the equivalent uniform annual cost
3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000, an estiinat nomic life of 8 years, and an estimated salvage value of $10,000. Annual mainte- nance will anount to $600 per year and periodic overhauls costing $1.,000 each will occur at the end of the second, fourth, and sixth years.
3. Using an interest rate of...
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