Question

1) Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,900 at the end of five years.

Using the straight-line method, depreciation expense for 2021 would be:

2) Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years.

Using the straight-line method, the book value at December 31, 2021, would be:

3)Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,600 at the end of ten years.

Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be:

4) Kansas Enterprises purchased equipment for $75,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $8,850 at the end of five years.

Using the double-declining balance method, depreciation expense for 2021 would be: (Do not round your intermediate calculations)

5) Kansas Enterprises purchased equipment for $74,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $8,850 at the end of five years.

Using the double-declining balance method, depreciation expense for 2022 would be: (Do not round your intermediate calculations)

6) Kansas Enterprises purchased equipment for $77,500 on January 1, 2021. The equipment is expected to have a ten-year life, with a residual value of $7,950 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2022, would be: (Do not round your intermediate calculations)

7) A machine has a cost of $17,100, an estimated residual value of $3,930, and an estimated useful life of eight years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.)

8) A building was purchased for $62,500. The asset has an expected useful life of eight years and depreciation expense each year is $4,000 using the straight-line method. What is the residual value of the building?

9) A company purchased a machine for $192,000 on October 1, 2021. The estimated service life is 10 years with a $19,600 residual value. The company records partial-year depreciation based on the number of months in service. Depreciation expense for the year ended December 31, 2021, using straight-line depreciation, is:(Do not round your intermediate calculations. Round your answer to the nearest dollar amount)

10) A company purchased a computer system at a cost of $28,000. The estimated useful life is 6 years, and the estimated residual value is $10,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

11) Berry Co. purchases a patent on January 1, 2021, for $32,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2022?

12) Berry Co. purchases a patent on January 1, 2021, for $37,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the carrying value of the patent on December 31, 2022?

13) The balance sheet of Hidden Valley Farms reports total assets of $820,000 and $955,000 at the beginning and end of the year, respectively. The return on assets for the year is 20%.
What is Hidden Valley's net income for the year?

14) A company purchased new equipment for $45,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,100; sales tax paid $3,000; and installation cost, $2,900. The cost recorded for the equipment was:

15) Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $8,250 at the end of five years.
Using the straight-line method, depreciation expense for 2021 would be:

16)Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $8,250 at the end of five years.
Using the straight-line method, the book value at December 31, 2021, would be:

17) A building was purchased for $63,500. The asset has an expected useful life of eight years and depreciation expense each year is $4,000 using the straight-line method. What is the residual value of the building?

18) A company purchased a computer system at a cost of $35,000. The estimated useful life is 7 years, and the estimated residual value is $8,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

Answer 1

Solution to the QUESTION-1

The depreciation expense for 2021 using the straight-line method

Straight Line Depreciation for each year = [Cost of the equipment – Residual value] / Useful life

= [$79,000 - $6,900] / 5 Years

= $72,100 / 5 Years

= $14,420

Therefore, using the straight-line method, depreciation expense for 2021 would be $14,420

PLEASE BE NOTED (More than 1 Question)

Dear student, as per the CHEGG guidelines, the experts are advised to answer the first question only when multiple questions were asked. Here, the multiple questions have asked in the single post and therefore, only the first question have been answered as per the CHEGG guidelines. Can you please ask the remaining questions separately. THANK YOU..!!!