Harrison Company purchased a piece of machinery for $100,000 on
1 July 2017. The residual value is $20,000 and the expected useful
life is 8 years.
Compute the depreciation expense and net book value of the
machinery for the years 2017, 2018, and 2019 using:
(i) Straight-line method.
(ii) Double declining balance method.
In case of any doubts or issues, please do comment below
Harrison Company purchased a piece of machinery for $100,000 on 1 July 2017. The residual value...
(a) Reda Company is planning to acquire a machine. The following costs relate to the machine: List price Tax Freight New parts to replace those damaged in unlouding Installation Repair of vandalism during installation Assembly Special foundation to be laid on the floor Testing for use Monthly maintenance S 80.000 6.00 1.000 2.000 1.500 1.200) 2.200 3.800 1,500 300 A 10% discount will be given off the list price. Identify and compute the cost of the machine. Explain your reasoning....
Problem 9-9A Ayayai Corporation purchased machinery on January 1, 2017, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciatian methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years...
Novak Company purchased machinery on January 1, 2017, for $97,600. The machinery is estimated to have a salvage value of $9,760 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method. Depreciation expense $ LINK TO TEXT Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017. (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense $ Click if you would like to Show Work for this...
On January 1, 2013, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $9,000,000 cost, $900,000 salvage value Machinery, 10-year estimated useful life, $1,200,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, the company decided to switch to the double-declining balance method of depreciation for the building. Powell also decided to change the total useful life of the...
Unit 2 11-4 Splish Company purchased machinery on January 1, 2017, for $96,800. The machinery is estimated to have a salvage value of $9,680 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method. Depreciation expense $ Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017. (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense $
Flounder Company purchased machinery on January 1, 2017, for $88,800. The machinery is estimated to have a salvage value of $8,880 after a useful life of 8 years. Compute 2017 depreciation expense using the straight-line method. Depreciation expense $ Compute 2017 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2017. Depreciation expense $
On January 1, 2017, QuickAir Transportation Company purchased a used aircraft at a cost of $63,100,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,100,000. QuickAir expects to fly the plane 800,000 miles the first year, 1,350,000 miles each year during the second, third, and fourth years, and 2,150,000 miles the last year. Read the requirements a. Straight-line method for 2017 and $ Using the straight-line method, depreciation is...
unit 2 11-2 Sweet Company purchased machinery on January 1, 2017, for $96,800. The machinery is estimated to have a salvage value of $9,680 after a useful life of 8 years. Compute 2017 depreciation expense using the straight-line method. Depreciation expense $ Compute 2017 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2017. Depreciation expense $
Coyote Manufacturing bought a delivery truck for $50,000 on July 1, 2017. The registration fee for the truck was $4,000. Coyote also spent $2,000 to paint its logo on the truck. Coyote estimated that the useful life would be four years or 200,000 miles and the residual value at the end of the useful life be $3,000. The mileage to be added to this truck during its useful life are 2017 2018 2019 2020 2021 30,000 ...
JoJo Limited ("JoJo") purchased a machinery for its plant on 1 May 2017. The machinery is expected to have a 10-year life and no residual value. The following expenditures were associated with the purchase: Cost of the machinery Freight-in charges Commission fees Legal title fees Sales taxes Essential set-up charges Cost to repair machinery damaged during installation 100,000 3,750 6,000 9,250 5,500 1,500 800 JoJo adopts the cost model as its accounting policy in subsequently measuring its property, plant and...