New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000, had an estimated service life of 10 years, had an estimated residual value of $60,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.
Required:
1. Calculate the balance in the accumulated depreciation account at the end of the second year.
Answer---------$170,000
Working
Straight line Method | ||
A | Cost | $ 9,10,000.00 |
B | Residual Value | $ 60,000.00 |
C=A - B | Depreciable base | $ 8,50,000.00 |
D | Life [in years left ] | 10 |
E=C/D | Annual SLM depreciation | $ 85,000.00 |
Depreciation schedule | ||||
Year | Book Value | Depreciation expense | Ending Book Value | Accumulated Depreciation |
1 | $ 9,10,000.00 | $ 85,000.00 | $ 8,25,000.00 | $ 85,000.00 |
2 | $ 8,25,000.00 | $ 85,000.00 | $ 7,40,000.00 | $ 1,70,000.00 |
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery...
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $650,000. The ovens originally cost $855,000, had an estimated service life of 10 years, had an estimated residual value of $55,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.3. What is the gain or loss on the sale of the ovens at the end of the second year?
[The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $520,000. The ovens originally cost $712,000, had an estimated service life of 10 years, had an estimated residual value of $42,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Required: 1. Calculate the balance in the accumulated depreciation account at the end of...
The following information applies to the questions displayed below) New Morning Bakery is in the process of dosing its operations. It sold its two-year old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000 had an estimated service life of 10 years, and an estimated residual value of $60,000. New Morning Bakery uses the straight line depreciation method for all equipment 176 points Required: 1. Calculate the balance in the accumulated depreciation account at the end...
[The following information applies to the questions displayed below) New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery tor s The ovens originally cost $690,000, had an estimated service life of 10 year 500,000 s, and an estimated residual value of $40,000 New Morning Bakery uses the straight-ine depreclation method for all equipment value 1.53 points Required 1. Calculate the balance in the accumulated depreciation account at the...
Required Information [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $530,000. The ovens originally cost $723.000, had an estimated service life of 10 years, had an estimated residual value of $43.000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery Required: 1. Calculate the balance in the accumulated depreciation account at the...
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $650,000. The ovens originally cost $855,000, had an estimated service life of 10 years, had an estimated residual value of $55,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.3. What is the gain or loss on the sale of the ovens at the end of the second year?
Required information Problem 7-8A Record the disposal of equipment (L07-6) [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $540,000. The ovens originally cost $734,000, had an estimated service life o years, had an estimated residual value of $44,000, and were depreciated using straight-line depreciatio Complete the requirements below for New Morning Bakery. Problem 7-8A Part 2 2....
Problem 7-8A Record the disposal of equipment (L07-6) The following information applies to the questions displayed below. New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $650,000. The ovens originally cost $855,000, had an estimated service life of 10 years, had an estimated residual value of $55,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Problem 7-8A Part 1 Required: 1....
Required Information Problem 7-8A Record the disposal of equipment (LO7-6) [The following information applies to the questions displayed below.) New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $600,000. The ovens originally cost $800,000, had an estimated service life of 10 years, had an estimated residual value of $50.000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Problem 7-8A Part 1...
Required information Problem 7-8A Record the disposal of equipment (L07-6) [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $580,000. The ovens originally cost $778,000, had an estimated service life of 10 years, had an estimated residual value of $48,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Problem 7-8A Part 1...