At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight...
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...
Each of the following events describes acquiring an asset that requires a year-end adjusting entry. 1. Paid $16,000 cash on January 1 to purchase computer equipment to be used for administrative purposes. The equipment had an estimated expected useful life of four years and a $1,600 salvage value. 2. Paid $16,000 cash on January 1 to purchase manufacturing equipment. The...
Answer each of the following questions. Assume the asset was purchased at the beginning of the year. 1. A plant asset purchased for $925,000 has an estimated life of 10 years and a residual value of $46,250. Depreciation for the second year of use, determined by the declining-balance method at twice the straight-line rate is $ 2. A plant asset...
Lilydale Ltd purchased new equipment on 1 January 2016, at a cost of $200,000. The company estimated that the equipment has a residual value of $20,000. The equipment is expected to be used for 5 years. Required Assuming the financial year ends on 31st Dec, calculate the depreciation expense using sum-of-years digit methods for years ended 2016 to 2019. Please...
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $358,800, has an estimated useful life of 10 years and an estimated residual value of $46,800. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 $ Year 2 $ Year 3 $ b....
P21-2 (L02,4) (Lessee Entries and Balance Sheet Presentation, Finance Lease) On January 1, 2017, Cage Company con- tracts to lease equipment for 5 years, agreeing to make a payment of $120,987 at the beginning of each year, starting January 1, 2017. The leased equipment is to be capitalized at $550,000. The asset is to be amortized on a double-declining-balance basis,...
not sure where to start on this
Assume that on January 1, 2016, a company acquired equipment for $8,700. A five year useful service life was estimated. The company uses the double-declining-balance depreciation method. Assume also that, when the equipment was purchased, a $1,600 residual value had been estimated. On October 31, 2017, the company sold the equipment for $2,500....
Required information (The following information applies to the questions displayed below.) On January 1, 2021, the Allegheny Corporation purchased equipment for $355,000. The estimated service life of the equipment is 10 years and the estimated residual value is $25,000. The equipment is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
24. Over the course of the life of a fixed asset a. Accumulated Depreciation will increase but not exceed depreciable cost. b. book value will decrease but not fall below residual value. c. book value may or may not approximate replacement cost. d. all of the above are correct. 25. During the current year, Gardner Home Center sold 800 power...