Homework Answers
| Net Book Value on December 31, 2018 | $36,000 | |||||
| Straight Line method | ||||||
| Years | Asset Cost | Depreciable Cost | Depreciable Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
| Jan.1, 2015 | $60,000 | $60,000 | ||||
| Dec.31, 2015 | $60,000 | 10% | $6,000 | $6,000 | $54,000 | |
| Dec.31, 2016 | $60,000 | 10% | $6,000 | $12,000 | $48,000 | |
| Dec.31, 2017 | $60,000 | 10% | $6,000 | $18,000 | $42,000 | |
| Dec.31, 2018 | $60,000 | 10% | $6,000 | $24,000 | $36,000 | |
| Depreciation rate = ($60,000 - $0)/10 years = $6,000 | ||||||
Add Answer to:
II. (this part is independent from part 1 Calculate the Net Book Value on December 31,...
The following information is available for Rose Bush Jardinière, which has an accounting year-end of December...
The following information is available for Rose Bush Jardinière, which has an accounting year-end of December 31, 2018. 1. A building was purchased on January 1, 2004, for $3,200,000. It is estimated to have a $200,000 salvage value at the end of its 30-year useful life. The straight-line method of depreciation is being used. 2. Factory equipment was purchased on January 1, 2017 for $82,000. It was estimated to have an $7,000 salvage value at the end of its 5-...
An asset purchased on January 1, 2015 for $66,000 that has an estimated life of 10...
An asset purchased on January 1, 2015 for $66,000 that has an estimated life of 10 years will have a book value on December 31, 2018 of:
23. What is the formula to compute the book value of an asset? A. The fair...
23. What is the formula to compute the book value of an asset? A. The fair value of the asset if the asset is sold. B. The cost of the asset less its accumulated depreciation C. The cost of the asset minus the asset's residual value. D. The cost at which the asset was purchased 24. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 10 years and has a...
Part II Shining Corporation adopts the cost model as its accounting policy in subsequently measuring its...
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...
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,...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has not depreciated its hotel buildings as it maintains it very well. The hotel building was constructed at a cost of RM200 million in 2002 and its scrap value was estimated at RM20,000 with 30 years useful life (3 marks) b) An entity was depreciating its plant on a straight line basis In year 2018, it changes its depreciation method to reducing balance method. (3...
Ely Co. bought a patent from Baden Corp. on January 1, 2018, for $900,000. An independent...
Ely Co. bought a patent from Baden Corp. on January 1, 2018, for $900,000. An independent consultant retained by Ely estimated that the remaining useful life at January 1, 2018 is 15 years. Its unamortized cost on Baden's accounting records was $450,000; the patent had been amortized for 5 years by Baden. How much should be amortized for the year ended December 31, 2018 by Ely Co.? A) $0. B) $45,000. C) $60,000. D) $90,000. Must show work
Arm, Inc. acquired 15% of Waist Corporation on January 1, 2017, for $410,000 when the book value of Waist’s net assets w...
Arm, Inc. acquired 15% of Waist Corporation on January 1, 2017, for $410,000 when the book value of Waist’s net assets was $1,050,000. During 2017, Waist reported net income of $230,000 and paid dividends of $90,000. On January 1, 2017, Arm purchased an additional 25% of Waist for $510,000. Any excess of cost over book value was attributable to goodwill (No amortization). On that same date, Arm changed to the equity method. During 2018, Waist reported net income of $480,000...
Part 1 Financial Accounting 214 ased a used CAT estimated use ue is $100,000 Mini-Exercise Depreciation...
Part 1 Financial Accounting 214 ased a used CAT estimated use ue is $100,000 Mini-Exercise Depreciation calculation methods Gandolfi Construction Co. purchased a new 6.3 336DL earth mover at a cost of $500,000 in January 2016. The company's estimat LO 3 ful life of this heavy equipment is 10 years, and the estimated salvage value is $100 Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2016, the first year of the equipment's life, and calculate...
On December 31, 2017, Bonita Inc. has a machine with a book value of $1,259,600. The...
On December 31, 2017, Bonita Inc. has a machine with a book
value of $1,259,600. The original cost and related accumulated
depreciation at this date are as follows.
Machine
$1,742,000
Less: Accumulated depreciation
482,400
Book value
$1,259,600
Depreciation is computed at $80,400 per year on a straight-line
basis.
Presented below is a set of independent situations. For each
independent situation, indicate the journal entry to be made to
record the transaction. Make sure that depreciation entries are
made to update...
The following information is available for Rose Bush Jardinière, which has an accounting year-end of December 31, 2018. 1. A building was purchased on January 1, 2004, for $3,200,000. It is estimated to have a $200,000 salvage value at the end of its 30-year useful life. The straight-line method of depreciation is being used. 2. Factory equipment was purchased on January 1, 2017 for $82,000. It was estimated to have an $7,000 salvage value at the end of its 5-...
23. What is the formula to compute the book value of an asset? A. The fair value of the asset if the asset is sold. B. The cost of the asset less its accumulated depreciation C. The cost of the asset minus the asset's residual value. D. The cost at which the asset was purchased 24. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 10 years and has a...
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,...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has not depreciated its hotel buildings as it maintains it very well. The hotel building was constructed at a cost of RM200 million in 2002 and its scrap value was estimated at RM20,000 with 30 years useful life (3 marks) b) An entity was depreciating its plant on a straight line basis In year 2018, it changes its depreciation method to reducing balance method. (3...
Part 1 Financial Accounting 214 ased a used CAT estimated use ue is $100,000 Mini-Exercise Depreciation calculation methods Gandolfi Construction Co. purchased a new 6.3 336DL earth mover at a cost of $500,000 in January 2016. The company's estimat LO 3 ful life of this heavy equipment is 10 years, and the estimated salvage value is $100 Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2016, the first year of the equipment's life, and calculate...
On December 31, 2017, Bonita Inc. has a machine with a book
value of $1,259,600. The original cost and related accumulated
depreciation at this date are as follows.
Machine
$1,742,000
Less: Accumulated depreciation
482,400
Book value
$1,259,600
Depreciation is computed at $80,400 per year on a straight-line
basis.
Presented below is a set of independent situations. For each
independent situation, indicate the journal entry to be made to
record the transaction. Make sure that depreciation entries are
made to update...
Most questions answered within 3 hours.
-
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 20 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 21 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 13 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 13 minutes ago -
) Raw materials are studied for contamination. Suppose that
the number of particles of contamination per...
asked 35 minutes ago -
After running a regression analysis we calculated an F test and
the significance level was 0.15....
asked 31 minutes ago -
----Can someone please help me solve this one using JAVA
----I thank you in advance
Create...
asked 36 minutes ago -
1. What force primarily attracts the potassium ion to
the nitrate ion?
a. London forces...
asked 37 minutes ago -
What are the negative effects of abruptly stopping the use of
all fossil fuels? Give at...
asked 44 minutes ago -
Given that many conflict are the result of different parties having
different interests, is it possible...
asked 49 minutes ago -
A 750 g block can slide uniformly along the horizontal track
when a string attached to...
asked 52 minutes ago -
In 2017, Juan entered into a contract to write a book. The
publisher advanced Juan $50,000,...
asked 1 hour ago