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Computing Straight-Line Depreciation On January 1, 2020, equipment is purchased for $240,000. The company incurred installation...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,000. The company uses the straight-line method of depreciation. At the end of 2019, Mr. Brightside recorded depreciation and assessed the asset, determining a recoverable amount of $122,000. Mr. Brightside sold the equipment to When You Were Young Corporation on June 30, 2020, for $120,000. Prepare the necessary...
12-32 cpeise for 2020 Brief Exercise 12-32 Whitney Company purchases equipment on July 1, 2020, for...
12-32
cpeise for 2020 Brief Exercise 12-32 Whitney Company purchases equipment on July 1, 2020, for $34,000. This o Computing Depreciation years and a residual value of $4,000. The company uses the straight-line with an Estimate Change LO4 2022, the company extended the estimate of the total useful life to six $2,000. Compute depreciation expense for 2022 equipment has a useful life of five depreciation method. On lamuary 1, adjusted the salvage value to equipment h Exercise 12-33 Whitney Company...
1) Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to...
1) Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,900 at the end of five years. Using the straight-line method, depreciation expense for 2021 would be: 2) Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method,...
On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process....
On January 2, 2018, the Jackson Company purchased equipment to
be used in its manufacturing process. The equipment has an
estimated life of eight years and an estimated residual value of
$32,250. The expenditures made to acquire the asset were as
follows:
Purchase price
$
159,500
Freight charges
2,400
Installation charges
4,500
Jackson’s policy is to use the double-declining-balance (DDB)
method of depreciation in the early years of the equipment’s life
and then switch to straight line halfway through the...
Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2016, for...
Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2016, for $35,000. The equipment has an estimated life of five years and an estimated residual value of $3,500. Sample's accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 10,000 units in 2016, but production subsequent to 2016 will increase by 10,000 units...
Question 1 (8 marks) Functional Manufacturing purchased equipment and a utility vehicle on January 1, 2019....
Question 1 (8 marks) Functional Manufacturing purchased equipment and a utility vehicle on January 1, 2019. The equipment cost $90,000 and has an estimated useful life of 8 years with a residual value of $15,000. The delivery vehicle cost $180,000 and has an estimated life of 5 years or 250,000 kilometres and a residual value of $17,000. The delivery truck is expected to be driven 25,000 and 35,000 kilometres in 2019 and 2020, respectively. . Required Functional has decided to...
Question #2. An assest was purchased for $100,000 on 1 January 20X5 and straight line depreciation...
Question #2. An assest was purchased for $100,000 on 1 January 20X5 and straight line depreciation of $20,000 pa is being charged (five years life, no residual life). The annual review of the assets lives is undertaken and for this particular asset the remaining useful life as at 1 January 20X7 is eight years . The financial statements for the year ended 31 December 20X7 are being prepared. What is the depreciation charge for the year ended 31 December 20X7?
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.
Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life...
Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life of ten years and a residual value of $8,000. The company uses the straight-line depreciation method. In 2021, the company discovered that it had incorrectly recorded depreciation for 2020 as $9,280. Ignoring income taxes, record the correcting entry on January 1, 2021. Date Account Name Dr. Cr. Jan. 1, 2021 Answer Answer Answer Answer Answer Answer
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,000. The company uses the straight-line method of depreciation. At the end of 2019, Mr. Brightside recorded depreciation and assessed the asset, determining a recoverable amount of $122,000. Mr. Brightside sold the equipment to When You Were Young Corporation on June 30, 2020, for $120,000. Prepare the necessary...
12-32
cpeise for 2020 Brief Exercise 12-32 Whitney Company purchases equipment on July 1, 2020, for $34,000. This o Computing Depreciation years and a residual value of $4,000. The company uses the straight-line with an Estimate Change LO4 2022, the company extended the estimate of the total useful life to six $2,000. Compute depreciation expense for 2022 equipment has a useful life of five depreciation method. On lamuary 1, adjusted the salvage value to equipment h Exercise 12-33 Whitney Company...
On January 2, 2018, the Jackson Company purchased equipment to
be used in its manufacturing process. The equipment has an
estimated life of eight years and an estimated residual value of
$32,250. The expenditures made to acquire the asset were as
follows:
Purchase price
$
159,500
Freight charges
2,400
Installation charges
4,500
Jackson’s policy is to use the double-declining-balance (DDB)
method of depreciation in the early years of the equipment’s life
and then switch to straight line halfway through the...
Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2016, for $35,000. The equipment has an estimated life of five years and an estimated residual value of $3,500. Sample's accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 10,000 units in 2016, but production subsequent to 2016 will increase by 10,000 units...
Question 1 (8 marks) Functional Manufacturing purchased equipment and a utility vehicle on January 1, 2019. The equipment cost $90,000 and has an estimated useful life of 8 years with a residual value of $15,000. The delivery vehicle cost $180,000 and has an estimated life of 5 years or 250,000 kilometres and a residual value of $17,000. The delivery truck is expected to be driven 25,000 and 35,000 kilometres in 2019 and 2020, respectively. . Required Functional has decided to...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...
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