38) | useful life | |||||||
(39000-3000)/4000 | ||||||||
9 | years | |||||||
out of 9 years expired is 3 years as (4000*3= 12000 accumulated dep) | ||||||||
so remaining useful life is 6 years | ||||||||
Answer) | option d | |||||||
6 years | ||||||||
Equipment was purchased on January 1 for $39,000 with an estimated residual value of $3,000 at the end of its useful li...
Question 11 A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's depreciation expense is $4,000 calculated on the straight-line basis and the balance in the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is O 10 years. 8 years. 3 years. O 5 years.
107. Porter Company purchased equipment for $450,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $20,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be a. $50,000. b. $30,000. c. $54,440. d. $34,440. 108. A plant asset was purchased on January 1 for $50,000 with an estimated salvage value of $10,000...
On January 1, 2016, Walid Company purchases equipment for $12,000 with 4 years estimated useful life and no salvage value. On January 1, 2019, Walid Company retires the equipment. The straight-line method of depreciation is applied and financial statements are prepared yearly. The retirement entry is: * On January 1, 2018, Zak Company purchases equipment for $24,000, with an estimated useful life of 4 years and no salvage value. The straight-line depreciation method is applied and financial statements are prepared...
Suppose FedEx purchased equipment on January 1, 2016, for $44,000. The expected useful life of the equipment is 10 years or 100,000 units of production, and its residual value is $4,000. Under three depreciation methods, the annual depreciation expense and the balance of accumulated depreciation at the end of 2016 and 2017 are: Method A Method B Method C Annual Annual Annual Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Year Expense Depreciation Expense Depreciation Expense Depreciation 2016 $4,000 $4,000 $8,800 $8,800...
Arcadia HS, purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a residual value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a straight-line basis. In 2014 (year 8), it is determined that the total estimated life should be 15 years with a residual value of $5,000 at the end of that time. What is the journal entry to correct the prior years’ depreciation? ...
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,...
An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $3,500. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only two years with a residual value of $1,400. a) Determine the amount of the annual depreciation for the first two years. $ b) Determine the book value at the end of Year 2. $ c) Determine the depreciation...
On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of eight years with an estimated residual value of $30,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 2020 2021 2022 1. Double-declining-balance method: Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2. Straight-line method: Equipment Less: Accumulated depreciation...
On July 1, 2020, Yorkton Company purchased for $438,000 equipment having an estimated useful life of five years with an estimated residual value of $22,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 2020 2021 2022 1. Double-declining balance method: Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year $ 0 $ 0 $ 0...
Revision of Depreciation Equipment with a cost of $899,100 has an estimated residual value of $89,100, has an estimated useful life of 27 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 14 full years of use. $ c. Assuming that at the start of the year 15 the remaining life is estimated to be 20 years and the residual value is estimated to be $93,100,...