1. On January 1, 2018, bonds with a face value of $91,000 were sold. The bonds mature on January 1, 2028. The face interest rate is 8%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10%. What is the market price of the bonds on January 1, 2018? The present value...
Check my wor Exercise 6-14 Revision of estimated useful life LO 6-2, 6-6 On January 1, 2018, Poultry Processing Company purchased a freezer and related installation equipment for $63,600. The equipment had a three-year estimated life with a $3,900 salvage value. Straight-line depreciation was used. At the beginning of 2020, Poultry Processing revised the expected life of the asset to...
On October 1, 2021, the Allegheny Corporation purchased equipment for $314,000. The estimated service life of the equipment is 10 years and the estimated residual value is $6,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number...
I'm not sure with my answer On January 1, 2021. AB 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...
As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are often asked to prepare various financial analysis necessary for decision making. Jacob Reynolds, the controller, asked you to evaluate whether a piece of factory equipment should be replaced or kept. The old piece of factory equipment was purchased four...
First, Drew company changed the total useful life from 10 years to 3 years on an asset purchased January 1, 2017, for $150,000. The asset was originally expected to be sold for $50,000 at the end of its useful life, but that amount also was changed in 2020 to $100,000. Drew company applies the straight-line method of depreciation to this...
Koh Brothers Limited acquired a company for $54 million on June 30, 2023 to produce hospital machines and equipment. The company estimated the factory has a useful life of 25 years with $2 million in residual value at the end of its useful life. The company adopted a straight line depreciation method for all its property, plant, and equipment. The...
Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment cost $65,000 and has an estimated useful life of 8 years with a residual value of $9,000 The delivery vehicle cost $150,000 and has an estimated life of 4 years or 200,000 kilometres and a residual value of $14,000. The delivery truck is expected...
Required information (The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $331,000. The estimated service life of the equipment is 10 years and the estimated residual value is $23,000. The equipment is expected to produce 292,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
On January 1 2018, Poultry Processing Company purchased a freezer and related installation equipment for $65,400. The equipment had a three-year estimated life with a $4,200 salvage value. Straight-line depreciation was used. At the beginning of 2020, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3200....