Question 4 Cheyenne Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $8.200 million and had an estimated useful life of 8 years with no residual value. In early April 2017, a part costing $717,500 and designed to increase the machinery’s efficiency was added. The machine’s estimated useful life did not change...
Question 7 9.6/24 View Policies Show Attempt History Current Attempt in Progress On January 1, 2016, Sheridan Corporation acquired equipment costing $72,320. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December...
ABC company has a piece of equipment that was purchased for $35,000 and has an estimated useful life of 7 years and a residual value of $3,000. It currently has a resale value of approximately $25,000. To date, $15,000 of depreciation has been recorded on the asset. What is the book value of the asset?
Equipment was purchased for $301000. Freight charges amounted to $14900 and there was a cost of $40500 for building a foundation and installing the equipment. It is estimated that the equipment will have a $59800 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be $59320 $48240 $71280 $49120 A...
2. On January 2, 2019, Kornis Corporation acquired equipment for $300,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $50,000. What is the balance in Accumulated Depreciation on December 31, 2019, if Kornis Corporation uses the double−declining−balance method ofdepreciation? A.$120,000 B. $60,000 C.$50,000 D.$100,000 3. On January 2, 2019, Konrad Corporation...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $135,000. The equipment was expected to have a useful life of three years, or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Year 2, and 8,100 hours in Year 3. Required: 1. Determine...
An asset was purchased for $30,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $4,000. The straight – line method of depreciation was used. Calculate the gain or loss if the asset is sold for $21,000 on December 31, 2019, the last day of the accounting period. A. $3,800 loss B....
Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Record the purchase on January 2 and the subsequent payment on January 12. Show computations. 3. Indicate the accounts, amounts, and effects (+ for increase and for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: Date Assets Liabilities +...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $319,000. The estimated service life of the equipment is 10 years and the estimated residual value is $22,000. The equipment is expected to produce 288,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of...
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and a $6,000 residual value. On January 1, 2023, ABC Company spent $53,000 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at...