On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated...
On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 15 years and had a salvage value of $7,000. On January 1, 2024, ABC Company decided the life of the equipment should be revised from 15 to 18 years. Calculate the depreciation expense recorded on the equipment for 2024 assuming ABC Company uses the straight line depreciation method.
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On January 1, 2018, ABC Company purchased equipment for $100,000. The
equipment was assigned an estimated...
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life...
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and a $6,000 residual value. On January 1, 2023, ABC Company spent $53,000 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at the end of the 28 years of $2,000. Assuming that ABC uses the straight-line depreciation method, calculate the book value...
On January 1, 2018, Betty DeRose, Inc. purchased equipment for $95,000. The equipment was assigned an...
On January 1, 2018, Betty DeRose, Inc. purchased equipment for $95,000. The equipment was assigned an estimated life of 15 years and a salvage value of $12,5 00. On January 1, 2021, Betty DeRose decided the life of the equipment should be changed from 15 to 25 years with a salvage value of $5,900 at the end of the 25 year s. Betty DeRose uses the straight-line method to depreciate its assets. Calculate the book value of the equipment at...
22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that...
22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as Depreciation Expense at December 31, 2018 is a. $20,000 b. $18,000. c. $16,000. d. $14,000. 23. A company purchased factory equinment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at...
On January 1, 2018. Poultry Processing Company purchased a freezer and related installation equipment for $68.400....
On January 1, 2018. Poultry Processing Company purchased a freezer and related installation equipment for $68.400. The equipment had a three-year estimated life with a $3,300 salvage value. Straight-line depreciation was used. At the beginning of 2020. Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,300. Required Compute the depreciation expense for each of the four years, 2018-2021. Depreciation Expense 2018 2019 2020 2021
On January 1 2018, Poultry Processing Company purchased a freezer and related installation equipment for $65,400. The eq...
On January 1 2018, Poultry Processing Company purchased a freezer and related installation equipment for $65,400. The equipment had a three-year estimated life with a $4,200 salvage value. Straight-line depreciation was used. At the beginning of 2020, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3200. Required Compute the depreciation expense for each of the four year, 2018-2021 Depreciation Expense 2018 2019 2020 2021
On January 1, 2013, Powell Company purchased a building and equipment that have the following useful...
On January 1, 2013, Powell Company purchased a building and equipment that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Equipment, 15-year estimated useful life, $600,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, Powell decided to change the total useful life of the building to 30 years. The equipment is depreciated using the straight-line method, but in 2018, the...
Osbourne Company purchased Equipment on January 1, 2015 at a cost of S110,000. The original Estimated...
Osbourne Company purchased Equipment on January 1, 2015 at a cost of S110,000. The original Estimated Useful (Service) Life of the Equipment was twenty (20) years and the original Estimated Salvage (Residual) Value was $10,000. On January 1, 2019, Osboume Company revised the total Estimated Useful (Service) Life (from the beginning) of the Equipment to ten (10) years and the Estimated Salvage (Residual) Value to S-0- (zero). Osbourne Company uses the Straight-Line Method to depreciate the Equipment REQUIRED In the...
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...
On January 1, 2019, Romero Company purchased equipment for $265,000. The equipment was assigned a $7,000...
On January 1, 2019, Romero Company purchased equipment for $265,000. The equipment was assigned a $7,000 residual value and a 16-year life. Romero Company will use the straight-line method to depreciate the equipment. On January 1, 2028, Romero Company spent $29,725 to overhaul the equipment. This capital expenditure resulted in Romero Company changing the life of the equipment from 16 years to 22 years and adjusting the residual value to be $4,000 at the end of the 22 years. Calculate...
On January 1, 2019, Romero Company purchased equipment for $265,000. The equipment was assigned a $7,000 residual value...
On January 1, 2019, Romero Company purchased equipment for $265,000. The equipment was assigned a $7,000 residual value and a 16-year life. Romero Company will use the straight-line method to depreciate the equipment. On January 1, 2028, Romero Company spent $29,725 to overhaul the equipment. This capital expenditure resulted in Romero Company changing the life of the equipment from 16 years to 22 years and adjusting the residual value to be $4,000 at the end of the 22 years. Calculate...
On January 1, 2018, Betty DeRose, Inc. purchased equipment for $95,000. The equipment was assigned an estimated life of 15 years and a salvage value of $12,5 00. On January 1, 2021, Betty DeRose decided the life of the equipment should be changed from 15 to 25 years with a salvage value of $5,900 at the end of the 25 year s. Betty DeRose uses the straight-line method to depreciate its assets. Calculate the book value of the equipment at...
22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as Depreciation Expense at December 31, 2018 is a. $20,000 b. $18,000. c. $16,000. d. $14,000. 23. A company purchased factory equinment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at...
On January 1, 2018. Poultry Processing Company purchased a freezer and related installation equipment for $68.400. The equipment had a three-year estimated life with a $3,300 salvage value. Straight-line depreciation was used. At the beginning of 2020. Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,300. Required Compute the depreciation expense for each of the four years, 2018-2021. Depreciation Expense 2018 2019 2020 2021
Osbourne Company purchased Equipment on January 1, 2015 at a cost of S110,000. The original Estimated Useful (Service) Life of the Equipment was twenty (20) years and the original Estimated Salvage (Residual) Value was $10,000. On January 1, 2019, Osboume Company revised the total Estimated Useful (Service) Life (from the beginning) of the Equipment to ten (10) years and the Estimated Salvage (Residual) Value to S-0- (zero). Osbourne Company uses the Straight-Line Method to depreciate the Equipment REQUIRED In the...
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