4) Tucker, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Tucker completed the following transactions: Jan 3 Traded in equipment with accumulated depreciation of $61,000 (cost of $131,000) for similar new equipment with a cash cost of $177,000. Received a trade-in allowance of $76,000 on...
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mated residual value $10,000 1,000Depreciation m In 2020, Bellico increased the estimated residual value to $2,000 five years for financial accounting purposes. Additional information follows and increased the total Expenses other than depreciation and tax...... 25,000 Required a. Provide the 2019 entry for depreciation and the ending 2019 accumulated depreciation bolance. b. Provide the 2020 entry for depreciation and...
Changing the estimated life of an asset Assume that ABC Catering Services paid $20,000 for equipment with a 10-year life and zero expected residual value. After using the equipment for four years, the company determines that the asset will remain useful for only three more years. Requirements 1. Record depreciation expense on the equipment for year 5 by the straight-line...
Bailand Company purchased a building for $286,000 that had an estimated residual value of $6,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur: 1. Bailand estimates that the...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 181,000 1,800,000 1,425,000 178,000 228,000 334,900 323,500 106,325 114,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles...
4 years and a residual value of $51,000. Assume that On May 31, 2015, a company sold a storage shed. The company had purchased the shed on January 1, 2008 the company has been using the straight-line method and sold the asset for $257,000. $303,000. When purchased, it had been estimated to have a useful life of Calculate the gain...
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 $ 174,000 $ — Buildings 1,450,000 327,900 Equipment 1,075,000 316,500 Automobiles and trucks 171,000 99,325 Leasehold improvements 214,000 107,000 Land improvements — — Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment—Straight...
Concord Company purchased a piece of equipment at the beginning of 2017. The equipment cost $455,040. It has an estimated service life of 8 years and an expected salvage value of $75,960. The sum-of-the-years'-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $63,180 will be depreciated for...
On January 1, Scotter Company purchased equipment at a cost of $120,000 that has an estimated useful life of 3 years or 30,000 hours. After year 2, what is the net book value of the equipment? 80,000 40,000 12,000 120,000
Change in Accounting Estimate. Innotech Corporation had a piece of sophisticated manufacturing equipment purchased on January 1, 2017 at a cost of $3.5 million. Innotech originally anticipated rapid changes in technology that would limit the equipment’s life to 5 years, and expected that it would have no salvage value at that point in time. During 2019, Innotech reassessed the expected...