Depreciate the equipment using the units of production method The equipment is expected to work 90,000...
| Depreciate the equipment using the units of production method | ||
| The equipment is expected to work 90,000 hours during its 5 year useful life with a salvage value of $4,700. The productivity level is as follows: | ||
| Year 1 - 30,000 hours; Year 2 - 25,000 hours, Year 3 - 15,000 hours, Year 4 - 12,000 hours, Year 5 - 8,000 hours | ||
| The equipment was disposed of on January 1, Year 5 for $22,000. Prepare the journal entry to record the disposal of the asset | ||
| What is the gain or loss on disposal of the equipment | ||
| Equipment/Machine | ||
| Purchase Price | $ 45,000 | |
| Sales Taxes | 3,900 | |
| Freight Insurance | 600 | |
| Shipping/transport costs | 1,700 | |
| Installation and Testing | 1,500 | |
| Training costs | 2,000 | |
| Total Acquisition cost | $ 54,700 | |
Homework Answers
Solution:
Total Aquition cost = $54,700 - $2,000 = $52,700
Training costs are not necessary to get equipment ready for use
Depreciation base = Cost of equipment - Salvage value = $52,700 - $4,700 = $48,000
Depreciaton Year 1 = $48,000 * 30,000/90,000 = $16,000
Depreciaton Year 2 = $48,000 * 25,000/90,000 = $13,333
Depreciaton Year 3 = $48,000 * 15,000/90,000 = $8,000
Depreciaton Year 4 = $48,000 * 12,000/90,000 = $6,400
Asset's carrying value at the end of 4 th year = $52,700 - $16,000 - $13,333 - $8,000 - $6,400 = $8,967
Gain or Loss on disposal of equipment = Net disposal proceeds - Assets carrying value
= $22,000 - $8,967
= $13,033
Gain on disposal of equipment = $13,033.
Add Answer to:
Depreciate the equipment using the units of production
method
The equipment is expected to work 90,000...
The equipment is expected to work 90,000 hours during its 5 year useful life with a...
The equipment is expected to work 90,000 hours during its 5 year useful life with a salvage value of $4,700. The productivity level is as follows: Year 1 - 30,000 hours; Year 2 - 25,000 hours, Year 3 - 15,000 hours, Year 4 - 12,000 hours, Year 5 - 8,000 hours Record the depreciate expense for year 3 Prepare the partial balance sheet at the end of year 3 The truck was disposed of on January 1, Year 5. Prepare...
Depreciate the truck using the units of activity method The truck is expected to travel 100,000...
Depreciate the truck using the units of activity method The truck is expected to travel 100,000 miles during its 6 year useful life with a salvage value of $3,300. The mileage breakdown is as follows: Year 1 - 30,000 miles; Year 2 - 25,000 miles, Year 3 - 15,000 miles, Year 4 - 10,000 miles, Year 5 - 12,000 miles, Year 6 - 8,000 Prepare the partial balance sheet at the end of year 4. The truck was disposed of...
A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The lis...
A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed purchase cost of the equipment from a vendor was $70,000. In addition, six other costs related to the equipment were incurred at the time of acquisition and in the first month of operations. These six related costs are displayed in the illustration Purchase Cost of Equipment and Six Related Costs Total = $110,000 Purchase Cost $70,000 1. Sales Tax $5,600 2. Shipping and Handling...
equipment was purchased for $86,300 on January 1, 2016. Freight charges amounted yo $3,800 and there...
equipment was purchased for $86,300 on January 1, 2016.
Freight charges amounted yo $3,800 and there was a cost of $12,000
for building a foundation and installing the equipment. It is
estimated that the equipment will have $22,000 salvage value at the
end of its 5 year useful life. What is the amount of accumulated
depreciation at December 31, 2017, if the straight-line method of
depreciation is used?
Multiple Choice Question 205 A company purchased factory equipment for 1400000. It...
Remaining me. I lui, Question Completion Status: OTT 5 500S UE. Warehouse no purtre equipment Scarropel...
Remaining me. I lui, Question Completion Status: OTT 5 500S UE. Warehouse no purtre equipment Scarropel Line Cost of land Attorney's fee, land acquisition Architect's fee, building design Accrued Taxes on Land Construction cost of Building Annual Salary of staff who supervised the construction of the building for six months RESE BARENESS CE 300.000 15,000 35,000 2.500 975,000 80.000 Interest charges on loan for building paid during 3 construction 5.500 22.000 55,000 5.000 25.000 00BBLE 6.500 5.600 62 150.000 Closing...
Stanley Corp. incurred the following costs to accquire land, make land improvements, construct a Warehouse and...
Stanley Corp. incurred the following costs to accquire land, make land improvements, construct a Warehouse and purchase equipment to start operating its sporting goods business. Line 1 Cost of land 300,000 2 Attorney’s fee, land acquisition 15,000 3 Architect’s fee, building design 35,000 4 Accrued Taxes on Land 2,500 5 Construction cost of Building 975,000 6 Annual Salary of staff who supervised the construction of the building for six months 80,000 7 Interest charges on loan for building paid during...
Question Completion Status: RE Cost of land Attorney's fee, land acquisition Architect's fee, building design Accrued...
Question Completion Status: RE Cost of land Attorney's fee, land acquisition Architect's fee, building design Accrued Taxes on Land 300,000 15,000 35,000 2.500 975,000 Construction cost of Building Annual Salary of staff who supervised the construction of the building for six months 80,000 Interest charges on loan for building paid during construction 5.500 ewalk Closing costs on purchase of land (Title Insurance, Title search) Construction of Parking lot and sidewalk Interest paid after completion of building construction Cost of Electrical...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building 25,000 Equipment 45,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The truck is expected to have a $2,500 residual value and...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of e...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building 25,000 Equipment 45,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The truck is expected to have a $2,500 residual value and...
24. Which of the following costs are variable? 10,000 Units 30,000 Units $100,000 40,000 90,000 50,000 Cost $300,000 240,000 90,000 150,000 2. 4. A) only 2 B) only 1 C) 1 and 2 D) 1 and4 25. Ed...
24. Which of the following costs are variable? 10,000 Units 30,000 Units $100,000 40,000 90,000 50,000 Cost $300,000 240,000 90,000 150,000 2. 4. A) only 2 B) only 1 C) 1 and 2 D) 1 and4 25. Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Eddy Company would sell it for $135. The cost to assemble the product is estimated at...
A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed purchase cost of the equipment from a vendor was $70,000. In addition, six other costs related to the equipment were incurred at the time of acquisition and in the first month of operations. These six related costs are displayed in the illustration Purchase Cost of Equipment and Six Related Costs Total = $110,000 Purchase Cost $70,000 1. Sales Tax $5,600 2. Shipping and Handling...
equipment was purchased for $86,300 on January 1, 2016.
Freight charges amounted yo $3,800 and there was a cost of $12,000
for building a foundation and installing the equipment. It is
estimated that the equipment will have $22,000 salvage value at the
end of its 5 year useful life. What is the amount of accumulated
depreciation at December 31, 2017, if the straight-line method of
depreciation is used?
Multiple Choice Question 205 A company purchased factory equipment for 1400000. It...
Remaining me. I lui, Question Completion Status: OTT 5 500S UE. Warehouse no purtre equipment Scarropel Line Cost of land Attorney's fee, land acquisition Architect's fee, building design Accrued Taxes on Land Construction cost of Building Annual Salary of staff who supervised the construction of the building for six months RESE BARENESS CE 300.000 15,000 35,000 2.500 975,000 80.000 Interest charges on loan for building paid during 3 construction 5.500 22.000 55,000 5.000 25.000 00BBLE 6.500 5.600 62 150.000 Closing...
Question Completion Status: RE Cost of land Attorney's fee, land acquisition Architect's fee, building design Accrued Taxes on Land 300,000 15,000 35,000 2.500 975,000 Construction cost of Building Annual Salary of staff who supervised the construction of the building for six months 80,000 Interest charges on loan for building paid during construction 5.500 ewalk Closing costs on purchase of land (Title Insurance, Title search) Construction of Parking lot and sidewalk Interest paid after completion of building construction Cost of Electrical...
24. Which of the following costs are variable? 10,000 Units 30,000 Units $100,000 40,000 90,000 50,000 Cost $300,000 240,000 90,000 150,000 2. 4. A) only 2 B) only 1 C) 1 and 2 D) 1 and4 25. Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Eddy Company would sell it for $135. The cost to assemble the product is estimated at...
Most questions answered within 3 hours.
-
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 4 minutes ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 10 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 14 minutes ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 1 hour ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 1 hour ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 1 hour ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 1 hour ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 1 hour ago -
Why are polymers not typically casted into products?
asked 1 hour ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 2 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 1 hour ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 2 hours ago