Question

1. On July 7, 2019, Harris purchased equipment costing $60,000, with an estimated life of 5 years and an estimated salvage value of $6,000. Compute the depreciation expense Harris would recognize on this equipment in 2019, assuming the company uses the straight-line method: (Round to the nearest full month) 2. On April 24, 2018 Creamy Ice Cream Co. purchased equipment costing $190,000, with an estimated life of 5 years and an estimated salvage value of $40,000. Compute the depreciation expense Creamy would recognize on this equipment in 2018, assuming the company uses the 150% declining balance method, with no switching to straight line. (Round to the nearest full month) 3. Name two intangible assets? 4. If a machine has a cost of $40,000 and an accumulated depreciation of $30,000, what is the book value of the machine in the current year? 5. If we sell the machine in question 4 for $15,000, what is the amount of the gain or loss on the sale?

its short-anwser questions, you dont have to count something

Answer 1

1. Depreciation = (Original Value - Salvage Value) / Useful Life
= ($60000-6000) / 5 = $10800

2. 150% Declining Depreciation = Beginning Book Value x 1.5 times straight line rate
= $190000 x 30% x 8/12 = $38000

3. Two intangible assets
Patent
Trademark

4. Book Value of machine = Cost - Accumulated Depreciation
= $40000 - 30000 = $10000

5. Gain / (Loss) on sale = Sale Proceeds - Book Value
= $15000 - 10000 = $5000

As per HOMEWORKLIB RULES we are supposed to answer 1 question, i have answered 5, so kindly post other questions separately