Answer a.
Cost of Machine = $920,000
Salvage Value = $20,000
Useful Life = 10 years
Annual Depreciation = (Cost of Machine - Salvage Value) / Useful
Life
Annual Depreciation = ($920,000 - $20,000) / 10
Annual Depreciation = $90,000
Depreciation Expense on December 31, 2024 = $90,000
Answer b.
Answer c.
Accumulated Depreciation = Depreciation, 2015 + Depreciation,
2016 + Depreciation, 2017 + Depreciation, 2018 + Depreciation, 2019
+ Depreciation, 2020 + Depreciation, 2021 + Depreciation, 2022 +
Depreciation, 2023 + Depreciation, 2024
Accumulated Depreciation = 10 * $90,000
Accumulated Depreciation = $900,000
Machine Net Book Value = Machine, Original Cost - Accumulated
Depreciation
Machine Net Book Value = $920,000 - $900,000
Machine Net Book Value = $20,000
Answer d.
Answer e.
QUESTION N6 Capital Assets ealeulating Book Value and disposal Extra Cor purchased a machine on January 1". 2015....
Vita Water purchased a used machine for $117,500 on January 2, 2020. It was repaired the next day at a cost of $5,250 and installed on a new platform that cost $1,650. The company predicted that the machine would be used for six years and would then have a $14,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30, 2025,...
Vita Water purchased a used machine for $117,500 on January 2, 2020. It was repaired the next day at a cost of $5,250 and installed on a new platform that cost $1,650. The company predicted that the machine would be used for six years and would then have a $14,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30, 2025,...
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...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Asset Cost Value Life Machine $ 40,000 $ 4,700 5 years Accumulated Depreciation (straight-line) $ 28, 240 (4 years) Machine 76,200 5,400 12 years 53,100 (9 years The machines were disposed of in the following ways. a Machine A: Sold on January 1 for $12,000 cash. b. Machine B: On January 1, this machine was sold to a...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Depreciation (straight-line) $ 28,240 (4 years) Original Residual Estimated Life Asset Value Cost Machine $ 40,000 $4,700 5 years A Machine 12 years 53,100 (9 years) 5, 400 76,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $12,000 cash b. Machine B: On January 1, this machine was sold to a...
1 Zephyr Minerals completed the following transactions involving machinery. Machine No. 1550 was purchased for cash on April 1, 2017, at an installed cost of $88,000. Its useful life was estimated to be six years with a $7,000 trade-in value. Straight-line depreciation was recorded for the machine at the ends of 2017, 2018, and 2019. On March 29, 2020, it was traded for Machine No. 1795, with an installed cash price of $82,000. A trade-in allowance of $32,210 was received...
Vita Water purchased a used machine for $122,300 on January 2, 2020. It was repaired the next day at a cost of $10,038 and installed on a new platform that cost $1.662. The company predicted that the machine would be used for six years and would then have a $24.320 residual value. Depreciation was to be charged on a straight line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30,...
Required information Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the machine and an additional $1,160 to secure it in place. The machine will be used for six years and have a $14,000 salvage value. Straight-line depreciation is used. On December 31, at the end of its...
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...
Part 1: Non-Monetary Exchange On January 1, 2020, the Felix Company purchased a machine to use in the manufacture of its product. The invoice cost of the machine was $260,000; at the time of acquisition, the machine had an original estimated useful life of 10 years and an estimated salvage value of $20,000. The machine was depreciated using the straight-line method. On August 1, 2025, Felix exchanged the old machine for a newer model. The new machine had a fair...