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...
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances Manufacturing equipment Accumulated depreciation through 2019 $ 120,000 57,600 During 2020, the following expenditures were incurred for the equipment Major overhaul of the equipment on January 2, 2020, that improved...
Nanki Corporation purchased equipment on January 1, 2016, for $630,000. In 2016 and 2017, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $14,000 residual value. In 2018, due to changes in technology, Nanki revised the useful life to a total of 6 years with no residual value. What depreciation would...
(13 Points) The cost of an asset is $1,180,000, and its residual value is $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the second year using the double-declining-balance method of depreciation. (Do not round any intermediate nearest dollar.) caiculations, and round your final answer to the Select one: O a. $118,000 O b. $192,000 O...
Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances: Equipment $ 305,000 Accumulated Depreciation (beginning of the year) 192,000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 2,950 Major overhaul of the...
Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $165,000 76.000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved...
Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2016, for $35,000. The equipment has an estimated life of five years and an estimated residual value of $3,500. Sample's accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the...
Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had an estimated useful life of eight years and an estimated residual value of $8,000. After using the equipment for three years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004 Determine the straight-line depreciation...
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: $ Manufacturing equipment. Accumulated depreciation through 2019 120,000 57,600 During 2020, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2, 2020, that improved...
Capital Assets - Amortiration QUESTION #4 2022 for cash Tulo Company purchased equipment in the amount of $400,000 on January 1, 2022 Estimated Salvage is $10,000 Estimated Useful Service) Life is 10 years. Estimated Units of Production over its Estimate Useful Life: 450,000 REQUIRED Calculate the Amortization Expense for the year 2024 using the Straight line Method Prepare the journal...