Homework Answers
Solution:
Annual depreciation - Original = ($143,000 - $11,000) / 12 = $11,000
Book value on 01.01.2026 = Cost - Accumulated depreciation = $143,000 - ($11,000*6) = $77,000
Overhaul cost = $27,000
Remaining cost to be depreciated = ($77,000 + $27,000) - $6,000 = $98,000
Remaining useful life = 20 - 6 = 14 years
Revised annual depreciation from 2026 = $98,000 / 14 = $7,000
Book value of equipment at 31.12.2027 = $104,000 - ($7,000*2) = $90,000
Add Answer to:
Question 6 On January 1, 2020, Harlow Company paid $137,000 to purchase a piece of equipment....
On January 1, 2020, Harlow Company paid $137,000 to purchase a piece of equipment. Before the...
On January 1, 2020, Harlow Company paid $137,000 to purchase a piece of equipment. Before the equipment could be used, Harlow had to spend $6,000 to put the equipment in working order. The equipment was assigned a useful life of 12 years and a residual value of $11,000. The straight-line method will be used to record depreciation on the equipment. On January 1, 2026, Harlow Company spent $27,000 to overhaul the equipment. This capital expenditure caused Harlow Company to change...
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life...
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and a $6,000 residual value. On January 1, 2023, ABC Company spent $53,000 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at the end of the 28 years of $2,000. Assuming that ABC uses the straight-line depreciation method, calculate the book value...
Question 5 On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was...
Question 5 On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreci ated using the straight line depreciation method On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equi pment at March 31, 2028.
Question 4 On January 1, 2021, ABC Company purchased a piece of machinery for $80,000. The...
Question 4 On January 1, 2021, ABC Company purchased a piece of machinery for $80,000. The machine had an estimated useful life of 10 years and a $5,000 residual value. On January 1, 2025, ABC Company determined the life of the machine should be revised from 10 years to 20 years and the residual value adjusted to $1,000 at the end of the twenty years. Assume ABC Company depreciates its assets using the double declining balance method of depreciation. Calculate...
A piece of equipment was acquired on January 1, 2018, at a cost of $22,000, with...
A piece of equipment was acquired on January 1, 2018, at a cost of $22,000, with an estimated residual value of $2,000 and an estimated useful life of Four years. The company uses the double-declining-balance method. What is its book value at December 31, 2019? A. $12,000 B. $10,000 C. $11,000 D. $5,500
I'm not sure with my answer On January 1, 2021, ABC company purchased a piece of...
I'm not sure with my answer
On January 1, 2021, ABC company purchased a piece of machinery for $80,000. The machine had an estimated useful life of 10 years and a $5,000 residual value. On January 1, 2025, ABC Company determined the life of the machine should be revised from 10 years to 20 years and the residual value adjusted to $1,000 at the end of the twenty years. Assume ABC Company depreciates its assets using the double declining balance...
A company acquired a new piece of equipment on January 1, 2011 at a cost of...
A company acquired a new piece of equipment on January 1, 2011 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2013, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. At what amount should the equipment be reported...
Question 3 Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2020....
Question 3 Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,892 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $25,000, a book value of $20,000, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Rauch set...
XYZ Company purchased a new piece of equipment on January 1, 2022. The following information relates...
XYZ Company purchased a new piece of equipment on January 1, 2022. The following information relates to the equipment purchased: Purchase price .............. ? Residual value .............. ? Life ........................ 8 years Using the straight-line depreciation method, the equipment's book value at December 31, 2025 would be $82,700. Using the double-declining balance depreciation method, the depreciation expense recorded on the equipment in 2023 would be $30,000. Calculate the residual value assigned to this piece of equipment.
Question 5 On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreci ated using the straight line depreciation method On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equi pment at March 31, 2028.
Question 4 On January 1, 2021, ABC Company purchased a piece of machinery for $80,000. The machine had an estimated useful life of 10 years and a $5,000 residual value. On January 1, 2025, ABC Company determined the life of the machine should be revised from 10 years to 20 years and the residual value adjusted to $1,000 at the end of the twenty years. Assume ABC Company depreciates its assets using the double declining balance method of depreciation. Calculate...
I'm not sure with my answer
On January 1, 2021, ABC company purchased a piece of machinery for $80,000. The machine had an estimated useful life of 10 years and a $5,000 residual value. On January 1, 2025, ABC Company determined the life of the machine should be revised from 10 years to 20 years and the residual value adjusted to $1,000 at the end of the twenty years. Assume ABC Company depreciates its assets using the double declining balance...
Question 3 Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,892 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $25,000, a book value of $20,000, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Rauch set...
Most questions answered within 3 hours.
-
What is the wavelength, in cm, of a microwave having a frequency
of 3.44 x 10^9...
asked 2 minutes ago -
A new business venture must develop a comprehensive business
plan to borrow money to get started....
asked 4 minutes ago -
Madtack Company uses a job-order costing system and started the month
of March with only one...
asked 6 minutes ago -
Describe how to distinguish true motility from brownian motion
and fluid flow when viewing a wet...
asked 9 minutes ago -
A manufacturer of game controllers is concerned that its
controller may be difficult for​ left-handed users....
asked 11 minutes ago -
Water at gauge pressure of 3.8 atmospheres at street level
enters an office building at 0.60...
asked 25 minutes ago -
Quick question, I want to know how to convert decimal numbers to
binary number, when i...
asked 46 minutes ago -
You found out that now you are going to receive payments of
$8,500 for the next...
asked 50 minutes ago -
17.
Technician A says that leaking components are usually repaired
rather than replaced. Technician B says...
asked 51 minutes ago -
A) An Operon is:?
1- A gene that affect another gene
transcription.
2. A gene coding...
asked 57 minutes ago -
When opening a file, use this method to determine whether a file
exists before you attempt...
asked 1 hour ago -
Sales total $300,000 when variable costs total $180,000 and
fixed costs are $60,000. Breakeven sales total:...
asked 1 hour ago