On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,000. The company uses the straight-line method of depreciation. At the end of 2019, Mr. Brightside recorded depreciation and assessed the asset, determining a recoverable amount of $122,000....
On January 2, 2019. Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000 hours. The estimated residual value is $14,000. If Konrad Corporation uses the units of production method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the...
An oil well cost $2,030,000 and is calculated to hold 350,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of 47,000 barrels of oil during the year? All 47,000 barrels were sold during the year. (Round any intermediate calculations to the nearest cent and your final answer to...
Required information [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $323,000. The estimated service life of the equipment is 10 years and the estimated residual value is $4,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]Skip to question[The following information applies to the questions displayed below.]On October 1, 2021, the Allegheny Corporation purchased equipment for $278,000. The estimated service life of the equipment is 10 years and the estimated residual...
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]Skip to question[The following information applies to the questions displayed below.]On October 1, 2021, the Allegheny Corporation purchased equipment for $278,000. The estimated service life of the equipment is 10 years and the estimated residual...
Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double- declining-balance method of depreciation is used. Year 1 Jan. Purchased a used delivery truck for $24,000, paying cash. 8 Mar. Paid garage $900 for changing the oil,...
Use the following information for questions 4 and 5. On January 1, 2015, Fredrichs Inc, purchased equipment with a cost of $3,060,000, a useful life! of 10 years and residual value of $60,000, The company uses straight-line depreciation. At December 31, 2016, the company determines that impairment indicators are present. The fair value less cost to sell the asset is...
Required information [The following information applies to the questions displayed below.) On October 1, 2021, the Allegheny Corporation purchased equipment for $224,000. The estimated service life of the equipment is 10 years and the estimated residual value is $4,000. The equipment is expected to produce 400,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
Question 3 On January 1, 2021, ABC Company purchased a piece of machinery for $80,000. The machine had an estimated useful life of 10 years and a $5,000 residual value. On January 1, 2025, ABC Company determined the life of the machine should be revised from 10 years to 20 years and the residual value adjusted to $1,000 at the...