Hi
Let me know in case any issue and query:
Sum of Year Digits: (Cost - Salvage value)/Sum of year*remaining years
12-68 Petty Corporation has been depreciating equipment over a 10-year life on which costs $24,000, was...
12-67 mated residual value $10,000 1,000Depreciation m In 2020, Bellico increased the estimated residual value to $2,000 five years for financial accounting purposes. Additional information follows and increased the total Expenses other than depreciation and tax...... 25,000 Required a. Provide the 2019 entry for depreciation and the ending 2019 accumulated depreciation bolance. b. Provide the 2020 entry for depreciation and the ending 2020 accumulated depreciation balance. c. Provide the comparative 2019 and 2020 income statements, including disclosures related to the...
Oliver Inc. acquired the following assets in January 2017: Equipment: estimated useful life, 5 years; residual value, $15,000 $470,000 Building: estimated useful life, 30 years; no residual value $720,000 The equipment was depreciated using the double-declining-balance method for the first three years for financial reporting purposes. In 2020, the company decided to change the method of calculating depreciation for the equipment to the straight-line method, because of a change in the pattern of benefits received (but no change was made...
Part II Shining Corporation adopts the cost model as its accounting policy in subsequently measuring its depreciable assets and uses straight-line depreciation on these assets. The company records annual depreciation expense at the end of each calendar year. On 10 January 2015, the company purchased an equipment costing $90,000. The equipment's useful life was estimated to be 12 years with a residual value of $18,000. Depreciation for partial years is recorded to the nearest full month. In early January 2019,...
Part II Shining Corporation adopts the cost model as its accounting policy in subsequently measuring its depreciable assets and uses straight-line depreciation on these assets. The company records annual depreciation expense at the end of each calendar year. On 10 January 2015, the company purchased an equipment costing $90,000. The equipment's useful life was estimated to be 12 years with a residual value of $18,000. Depreciation for partial years is recorded to the nearest full month. In early January 2019,...
Jijang Excavations Ltd. (JEL) operates specialized equipment for installing natural gas pipelines. JEL, which has a December 31 year end, began 2020 with a single piece of equipment that had been purchased on January 1, 2017, for $45,000 and a truck that had been purchased on January 1, 2019, for $70,000. When the equipment was purchased, JEL’s management had estimated that the equipment would have a residual value of $3,000 and a useful life of six years. When the truck...
Plummer Industries purchased a machine for $43,500 and is depreciating it with the straight-line method over a life of 8 years, using a residual value of $2,700. At the beginning of the sixth year, an extraordinary repair was made costing $7,500, the estimated useful life was extended to 13 years, and no change was made to the estimated residual value. Calculate depreciation expense for year 6.
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...
On January 2, 2019, Kaiman Corporation acquired equipment for $800,000. The estimated life of the equipment is 5 years or 100,000 hours. The estimated residual value is $50,000. What is the balance in Accumulated Depreciation on December 31, 2020, if Kaiman Corporation uses the straight-line method of depreciation? O A. $160,000 O B. $320,000 O c. $150,000 OD. $300,000
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...
When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that is proportional to the use of the asset is: O declining-balance method straight-line method O units-of-output method direct-units method A machine was acquired on January 1 of the current year. It had a cost of $75,000, an estimated residual value of $5,000, and an estimated useful life of 4 years or 18,000 hours. What is the amount of depreciation...