Homework Answers
Cost = $60,000
Date of purchase = March 6 2020,
Equipment useful life = 10 years
Straight line rate of depreciation per year = 100/10 = 10% per year.
QS-9-10
a) Nearest whole month rate = 10/12 = 0.84%
Thus depreciation = 60,000 x 0.84% x 10 months = $5,040 for 2020 and 60,000 x 0.84 x 12 = $6,048.
b) using the half year convention rate = 10/2 = 5% for half year and 10% for full year.
Thus depreciation for 2020 = 60,000 x 5% = $3,000 and for 2021 = 60,000 x 10% = $6,000.
QS-9-11
Double declining rate = Straight line rate x 2 = 10% x 2 = 20%
a) Nearest Whole Month rate = 20/12 = 1.67%
Thus depreciation = 60,000 x 1.67% x 10 months = $10,020 for 2020 and 60,000 x 1.67 x 12 = $.12,024
b) using the half year convention rate = 20/2 = 10% for half year and 20% for full year.
Thus depreciation for 2020 = 60,000 x 10% = $6,000 and for 2021 = 60,000 x 20% = $12,000.
Add Answer to:
Calcun J ang equipment for the year ended December 31, 2020. Assume the was purchased on...
Che On August 3. Cinco Construction purchased special purpose equipment at a cost of $5,239,900. The...
Che On August 3. Cinco Construction purchased special purpose equipment at a cost of $5,239,900. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $37,830. 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...
1. In 2020, Johnson Co purchased a machine used for manufacturing for $1,000,000. This machine had...
1. In 2020, Johnson Co purchased a machine used for manufacturing for $1,000,000. This machine had a useful life of 8 years and had a salvage value of $50,000. Johnson uses the half-year convention. Prepare a schedule showing the depreciation expense, accumulated depreciation, and the Book Value of the asset over its life under the following 2 methods (round all amounts to the nearest dollar): a. Straight-line depreciation I b. Double declining Balance Method (Switch over to straight line depreciation...
Explain with full steps please Problem 9-15A Partial-period depreciation; disposal of PPE LO2, 3, 6
Problem 9-15A Partial-period depreciation; disposal of PPE LO2, 3, 6Endblast Productions showed the following selected asset balances on December 31, 2020: Land$432,800Building562,400Accumulated depreciation, building1408,000Equipment189,200Accumulated depreciation, equipment280,0001Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month.2Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining-balance method to the nearest whole month.Required:Prepare the entries for each of the following. (Round intermediate calculations to the...
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...
Problem 9-5A Calculating depreciation-partial periods LO2, 3 West Coast Tours runs boat tours along the west...
Problem 9-5A Calculating depreciation-partial periods LO2, 3 West Coast Tours runs boat tours along the west coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $846,000, having a useful life of 10 years or 12,900 hours, with a residual value of $201.000. The company's year-end is December 31. Skipped Required: Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule. (Note: Depreciation is calculated to the nearest month....
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, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful...
On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $127,500. 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 $3,060,000 $3,060,000 Year-End Book Value Depreciation...
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...
Testbank Problem 134 On July 1, 2020, Novak Company purchased for $5,040,000 snow-making equipment having an...
Testbank Problem 134
On July 1, 2020, Novak Company purchased for $5,040,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $210,000. 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
$5,040,000
$5,040,000
Less: Accumulated Depreciation
$
$...
On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of...
On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of eight years with an estimated residual value of $30,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 2020 2021 2022 1. Double-declining-balance method: Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2. Straight-line method: Equipment Less: Accumulated depreciation...
Che On August 3. Cinco Construction purchased special purpose equipment at a cost of $5,239,900. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $37,830. 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...
1. In 2020, Johnson Co purchased a machine used for manufacturing for $1,000,000. This machine had a useful life of 8 years and had a salvage value of $50,000. Johnson uses the half-year convention. Prepare a schedule showing the depreciation expense, accumulated depreciation, and the Book Value of the asset over its life under the following 2 methods (round all amounts to the nearest dollar): a. Straight-line depreciation I b. Double declining Balance Method (Switch over to straight line depreciation...
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...
Problem 9-5A Calculating depreciation-partial periods LO2, 3 West Coast Tours runs boat tours along the west coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $846,000, having a useful life of 10 years or 12,900 hours, with a residual value of $201.000. The company's year-end is December 31. Skipped Required: Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule. (Note: Depreciation is calculated to the nearest month....
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, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $127,500. 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 $3,060,000 $3,060,000 Year-End Book Value Depreciation...
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...
Testbank Problem 134
On July 1, 2020, Novak Company purchased for $5,040,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $210,000. 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
$5,040,000
$5,040,000
Less: Accumulated Depreciation
$
$...
On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of eight years with an estimated residual value of $30,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 2020 2021 2022 1. Double-declining-balance method: Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2. Straight-line method: Equipment Less: Accumulated depreciation...
Most questions answered within 3 hours.
-
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 40 minutes ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 1 hour ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 2 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 2 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 5 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 5 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 5 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 5 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 6 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 6 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 6 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 7 hours ago