Identify a type of company in your pathway that might purchase fixed assets A company in my pathway that might purchase fixed assets is Bank of America.
List 5 fixed assets that they might purchase to run their business.
1. Furniture (filing cabinets, sofas, desks, chairs etc.)
2. ATM Machines
3. Computer Equipment (routers, servers.)
4. Computer Software (only the most expensive types)
5. Office Equipment (photocopiers, fax machines, postage meter
etc.)
I answered the top two questions, but have to answer the
others listed below.
Select one depreciable fixed asset. Based on research suggest what
the cost, residual value and estimated life might be for that fixed
asset. (please list the name of the asset you would be
calculating for)
Using your assumptions above, calculate:
Straight-line depreciation and book value for each of the first two years
Declining Balance depreciation and book value for each of the first two years
Units of Production depreciation (make assumptions about the first two year’s use), and book value for each of the first two years.
Select one depreciable fixed asset.
Name- Office Equipment -Photocopier
Cost = $ 800
Residual value = $ 50
Useful life = 5 years
Units of Production = 5,000 copies per month i.e 300,000 copies in 5 years of useful life ( 5,000 * 60 months)
a) Annual depreciation as per Straight-line method = (Cost - Residual value) / useful life in years
= ( 800 - 50) / 5 = $ 150
Depreciation for 1st and 2nd year will be $ 150 each year
Book value at the end of 1st year = $ 800 - 150 = $ 650
Book value at the end of 2nd year = $ 650 - 150 = $ 500
b) Declining Balance rate = 1 / useful life in years * 100 = 1 / 5 * 100= 20%
Depreciation for 1st year = $ 800 * 20% = $ 160
Book value at the end of 1st year = $ 800 - 160 = $ 640
Depreciation for 2nd year = $ 640 * 20% = $ 128
Book value at the end of 2nd year = $ 640 - 128 = $ 512
c) Per unit Depreciation as per Units of Production method = (Cost - Residual value) / Total units to be produced during the useful life
= (800 - 50) / 300,000
= 0.0025 per copy
Depreciation for 1st year = (5,000 * 12) * 0.0025 = $ 150 (5000 copies in each month for 1st year)
Depreciation for 2nd year = (5,500 * 12) * 0.0025 = $ 165 (5500 copies in each month for 2nd year)
Book value at the end of 1st year = $ 800 - 150 = $ 650
Book value at the end of 2nd year = $ 650 - 165 = $ 485
Identify a type of company in your pathway that might purchase fixed assets A company in...
Identify a type of company in your pathway that might purchase fixed assets A company in my pathway that might purchase fixed assets is Bank of America. List 5 fixed assets that they might purchase to run their business. 1. Furniture (filing cabinets, sofas, desks, chairs etc.) 2. ATM Machines 3. Computer Equipment (routers, servers.) 4. Computer Software (only the most expensive types) 5. Office Equipment (photocopiers, fax machines, postage meter etc.) I answered the top two questions, but have...
Fixed Asset Discussion: Identify a type of company in your pathway that might purchase fixed assets (see suggestions below). List 5 fixed assets that they might purchase to run their business. Select one depreciable fixed asset. Based on research suggest what the cost, residual value and estimated life might be for that fixed asset. Using your assumptions above, calculate: Straight-line depreciation and book value for each of the first two years Declining Balance depreciation and book value for each of...
Fixed Asset Discussion: Identify a type of company in your pathway that might purchase fixed assets (see suggestions below). List 5 fixed assets that they might purchase to run their business. Select one depreciable fixed asset. Based on research suggest what the cost, residual value and estimated life might be for that fixed asset. Using your assumptions above, calculate: Straight-line depreciation and book value for each of the first two years Declining Balance depreciation and book value for each of...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: al Asset Machine A Machine B Original Cost $85,700 29,500 Residual Value $10,400 3,900 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $65, 260 (13 years) 19,200 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $29,500 cash. b. Machine B: On January 2, this machine...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) $63,613 (13 years) 14,700 (6 years) Estimated Life Original Cost Residual Value $4,800 2,400 Asset Machine A Machine B $78,200 22,000 15 years 8 years The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $22,000 cash b. Machine B: On January 2, this machine was sold...
1. Custom Banners pays $300,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $119,000, the building $204,000, and the equipment $17.000. Journalize the lump-sum purchase. First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset. Total Percentage of Total Market Purchase Price...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $77,200 2 1,000 Residual Value $4,500 2,200 Accumulated Depreciation Estimated Life (straight-line) 15 years $63,007 (13 years) 8 years 14,100 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash. b. Machine B: On January 2, this machine was...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 83,200 $ 8,400 15 years $ 64,827 (13 years) Machine B 27,000 3,400 8 years 17,700 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $27,000 cash. Machine B: On January 2, this machine was...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $85,700 29,500 Residual Value $10,400 3,900 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $65,260 (13 years) 19,200 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $29,500 cash. b. Machine B: On January 2, this machine was sold...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: points Original Coat $79,700 23.500 Residual Value $5,600 2.700 Estimated Lite 15 years years Accumulated Depreciation (straight-line) $64,220 (13 years) 15.600 (6 years) Machine A Machine The machines were disposed of in the following ways: References a Machine A Sold on January 2 for $23,500 cash b. Machine B: On January 2, this machine was sold to...