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Question 3 (9 marks) On January 1, 2015, Time Limited purchased a machine for $350,000. The...
Question 4 (8 Marks) Prepare the journal entries for the following independent situations to recognize the purchase and amortization for the first year. Explanations are not required. Magic Plus paid for several patents on January 1, 2019 for a total price of $190,000. The patents have a legal life of 25 years and are expected to provide revenues for the next 10 years. January 1, 2019, Darth Vader Ltd. paid $450,000 to acquire Skywalker Ltd. Skywalker had assets valued at...
Question 3 (9 marks) On January 1, 2015, Time Limited purchased a machine for $350,000. The machine was estimated to have a 10 year useful life with a residual value of $15,000. The company used the straight-line method to depreciate the machine. On December 31, 2019, the company sold the equipment for $190,000 cash Required • Calculate the gain or loss on sale on the sale of the machine. • Prepare the journal entry to recognize the sale of the...
HabbLCROAaBDCCDUAdDOCHODUCCL 1 Normal 1 No Spac... Heading 1 Heading 2 Title Styles Paragraph int to download proofing tools and future updates? Download Don't show again Assignment 4 - Chapter 6 Comm 204-Spring 2020 Question 3 (9 marks) On January 1, 2015, Time Limited purchased a machine for $350,000. The machine was estimated to have a 10 year useful life with a residual value of $15,000. The company used th straight-line method to depreciate the machine. On December 31, 2019, the...
Question 3 28 marks On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost ($) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018, information about the...
Question 3 28 marks On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost (S) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018, information about the...
On January 1, 2017, Extensive Manufacturing purchased a machine for $580,000 that it expected to have a useful life of four years. The company estimated that the residual value of the machine was $100,000. Extensive Manufacturing used the machine for two years and sold it on January 1, 2019, for $320,000. As of December 31, 2018, the accumulated depreciation on the machine was $240,000. Read the requirements. 1. Calculate the gain or loss on the sale of the machinery Extensive...
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: IN EXCEL FORMAT- Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production and...
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production and Double Declining Balance.
Question 2 (20 marks) Sunshine Corporation purchased a new machine on Jan 4, 2018 for $190,000 cash. The machine has a useful life of 10 years or of 25,000 hours. After the useful life the machine will have a residual value of $2,000. The machine was used for 2,500 hours in 2018 and 3,500 hours in 2019. Required: Calculate the depreciation expense for 2018 and 2019 under each of the following methods: Straight-line (3 marks) Double diminishing-balance (5 marks) Units-of...
on january 1 2016 horton inc sells a machine for 21000 the machine originaly purchased on jan 1 2014 for 43500 the machine estimated to have a useful life of 5 years no residual value horton uses straight line depreciation prepare journal entry for record the sale record the entry for sale of equipment