Homework Answers
|
7. Double declining rate = 200/Useful life = 200/6 = 33.33% Depreciation expense = 300,000*33.33%*9/12 = 75,000 Option A |
|
|
8. Depreciation expense = (Cost - Salvage value) /Useful life = (300,000-30,000)/6 * 9/12 = 45,000*9/12 = 33,750 Option A |
Add Answer to:
Use the information below to answer the following questions: Gotcha Company Ltd. acquired equipment on April...
Question 17 (2 points) Use the following information to answer questions 17-20. MARCOTTE MASONARY LTD. Statement...
Question 17 (2 points) Use the following information to answer questions 17-20. MARCOTTE MASONARY LTD. Statement of Financial Position December 31, 2015 $ 50,000 5,000 75,000 110,000 90,000 Accounts payable Salaries payable Mortgage payable Total liabilities $ 40,000 5,000 190,000 235,000 $220,000 Cash Prepaid insurance Accounts receivable Inventory Land Building -Accumulated depreciation Trademark -Accumulated amortisation Total assets Common shares Retained earnings Total shareholders' equity 200,000 105,000 305,000 160,000 60,000 $ 75,000 25,000 50,000 $540,000 Total liabilities and shareholders' equity $540,000...
Salim Construction Ltd. acquired the following property, plant and equipment on January 1, 2018: Residual Asset...
Salim Construction Ltd. acquired the following property, plant and equipment on January 1, 2018: Residual Asset Cost Value Useful Life amortization method Office equipment $ 75,000 $5,000 5 years double-declining balance method Building 220,000 20,000 straight-line method Delivery equipment 250,000 10,000 units-of-production method The delivery equipment is estimated to be useful for 240,000 kilometers and was driven 30,000 kilometers during 2018 and 40 000 km during 2019 25 years 10 years REQUIRED: 1. Calculate amortization expense for 2018 and 2019...
ng Depreciation Use the following information to answer Questions 46-50: On April 1, 2016, a company...
ng Depreciation Use the following information to answer Questions 46-50: On April 1, 2016, a company that uses a calendar year purchases equipment with an acquisition cost of $85,000 that it estimates will produce 800,000 units over its 8-year life and have a residual value of $6,000 You are depreciating the asset for book purposes. 46. If the company uses the straight-line method, 2016 depreciation a. $10,625 b. $10,000 c. $7,969 d. $7,500 47. If the company uses units of...
Rima Limited acquired a piece of equipment from HLG Ltd on 1 July 2015 at a...
Rima Limited acquired a piece of equipment from HLG Ltd on 1 July 2015 at a cost of (GST exclusive) $ 500,000. Rima paid a 40% deposit and the balance was covered by a loan from HLG Ltd. Rima Limited uses the diminishing value method of depreciation at a rate of 15 % DV. Rima Ltd has a 31st December Balance Date. A. Prepare the journal entry to record the purchase of the equipment - ignore any GST. Dates required,...
A company paid $120,000 for equipment on April 1, 2012. The equipment was expected to...
A company paid $120,000 for equipment on April 1, 2012. The equipment was expected to have a 10-year useful life and residual value of $20,000. Assume that the company uses DDB for income taxes and straight-line for financial reporting. For each method, calculate depreciation expense for the first two years. (Round your answers to the nearest whole dollar.) Depreciation for Year-end income taxes Straight-Line 24000 December 31, 2012 December 31, 2013 10000 10,000 19200 14000 9200 Total The extra...
2. On January 2, 2019, Kornis Corporation acquired equipment for $300,000. The estimated life of the...
2. On January 2, 2019, Kornis Corporation acquired equipment for $300,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $50,000. What is the balance in Accumulated Depreciation on December 31, 2019, if Kornis Corporation uses the double−declining−balance method ofdepreciation? A.$120,000 B. $60,000 C.$50,000 D.$100,000 3. On January 2, 2019, Konrad Corporation acquired equipment for $760,000. The estimated life of the equipment is 5 years or 37,000 hours. The estimated residual value...
Ayman Company purchased equipment on January 1, 2017 for $90,000. It is estimated that the equipment...
Ayman Company purchased equipment on January 1, 2017 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Instructions Answer the following independent questions. 1. Compute the amount of depreciation expense for the year ended December 31, 2018, using the straight-line method of depreciation. 2. If 16,000 units of product are produced in...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its subsidiary on January 1, 2015, at a purchase price that was $222,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $132,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $90,000 was assigned to Goodwill. In January of 2018, the wholly owned subsidiary sold Equipment to the...
50. Prepare consolidation spreadsheet for intercompany sale of equipment-Equity method Assume a parent company acquired its...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
Required information [The following information applies to the questions displayed below.] The adjusted trial balance...
Required information [The following information applies to the questions displayed below.] The adjusted trial balance for Chiara Company as of December 31, 2017, follows. Debit Credit Cash $ 176,900 Accounts receivable 51,000 Interest receivable 22,600 Notes receivable (due in 90 days) 172,000 Office supplies 16,000 Automobiles 172,000 Accumulated depreciation—Automobiles $ 95,000 Equipment 136,000 Accumulated depreciation—Equipment 21,000 Land 78,000 Accounts payable 92,000 Interest payable 20,000 Salaries payable 17,000 Unearned fees 40,000 Long-term notes payable 156,000 Common stock 29,580 Retained earnings...
Question 17 (2 points) Use the following information to answer questions 17-20. MARCOTTE MASONARY LTD. Statement of Financial Position December 31, 2015 $ 50,000 5,000 75,000 110,000 90,000 Accounts payable Salaries payable Mortgage payable Total liabilities $ 40,000 5,000 190,000 235,000 $220,000 Cash Prepaid insurance Accounts receivable Inventory Land Building -Accumulated depreciation Trademark -Accumulated amortisation Total assets Common shares Retained earnings Total shareholders' equity 200,000 105,000 305,000 160,000 60,000 $ 75,000 25,000 50,000 $540,000 Total liabilities and shareholders' equity $540,000...
Salim Construction Ltd. acquired the following property, plant and equipment on January 1, 2018: Residual Asset Cost Value Useful Life amortization method Office equipment $ 75,000 $5,000 5 years double-declining balance method Building 220,000 20,000 straight-line method Delivery equipment 250,000 10,000 units-of-production method The delivery equipment is estimated to be useful for 240,000 kilometers and was driven 30,000 kilometers during 2018 and 40 000 km during 2019 25 years 10 years REQUIRED: 1. Calculate amortization expense for 2018 and 2019...
ng Depreciation Use the following information to answer Questions 46-50: On April 1, 2016, a company that uses a calendar year purchases equipment with an acquisition cost of $85,000 that it estimates will produce 800,000 units over its 8-year life and have a residual value of $6,000 You are depreciating the asset for book purposes. 46. If the company uses the straight-line method, 2016 depreciation a. $10,625 b. $10,000 c. $7,969 d. $7,500 47. If the company uses units of...
Rima Limited acquired a piece of equipment from HLG Ltd on 1 July 2015 at a cost of (GST exclusive) $ 500,000. Rima paid a 40% deposit and the balance was covered by a loan from HLG Ltd. Rima Limited uses the diminishing value method of depreciation at a rate of 15 % DV. Rima Ltd has a 31st December Balance Date. A. Prepare the journal entry to record the purchase of the equipment - ignore any GST. Dates required,...
A company paid $120,000 for equipment on April 1, 2012. The equipment was expected to have a 10-year useful life and residual value of $20,000. Assume that the company uses DDB for income taxes and straight-line for financial reporting. For each method, calculate depreciation expense for the first two years. (Round your answers to the nearest whole dollar.) Depreciation for Year-end income taxes Straight-Line 24000 December 31, 2012 December 31, 2013 10000 10,000 19200 14000 9200 Total The extra...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 5 minutes ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 9 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 24 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 19 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 32 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 40 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 40 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 42 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 43 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 47 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 1 hour ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 1 hour ago