Oliver Inc. acquired the following assets in January 2017: Equipment: estimated useful life, 5 years; residual value, $15,000 $470,000 Building: estimated useful life, 30 years; no residual value $720,000 The equipment was depreciated using the double-declining-balance method for the first three years for financial reporting purposes. In 2020, the company decided to change the method of calculating depreciation for the...
On January 1, 2020, SugarBear Company acquired equipment costing $160,000, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $14,400. The estimated output from this equipment is as follows: 2020-18,000 units; 2021-22,000 units; 2022—30,000 units; 2023– 27,000 units; 2024–15,000 units. The company is now considering possible methods...
Osbourne Company purchased Equipment on January 1, 2015 at a cost of S110,000. The original Estimated Useful (Service) Life of the Equipment was twenty (20) years and the original Estimated Salvage (Residual) Value was $10,000. On January 1, 2019, Osboume Company revised the total Estimated Useful (Service) Life (from the beginning) of the Equipment to ten (10) years and the...
Ruger Manufacturing sells office equipment on September 30, 2013, for $8,250 cash. The office equipment was purchased on January 5, 2009, at a cost of $72,500, and had an estimated useful life of five years and an estimated residual value of $2,500. Adjusting journal entries are made annually at the company’s year-end, December 31 and Ruger uses straight-line depreciation. Prepare...
The balance sheet of Hidden Valley Farms reports total assets of $845,000 and $965,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Hidden Valley's net income for the year? Multiple Choice $9,650,000 $9,050,000 $90,500 $96,500. A company purchased new equipment for $43,000. The company paid cash for the...
On January 1, 2021, the Allegheny Corporation purchased equipment for $223,000. The estimated service life of the equipment is 10 years and the estimated residual value is $14,000. The equipment is expected to produce 256,000 units during its life.Required:Calculate depreciation for 2021 and 2022 using each of the following methods.
On January 1, 2021, the Allegheny Corporation purchased equipment for $162,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 350,000 units during its life. Required:Calculate depreciation for 2021 and 2022 using each of the following methods.
A recent annual report for Swifty Air Cargo Company states the following : Property, Plant and Equipment Expenditures for major additions, improvements, flight equipment modifications, and specific equipment overhaul costs are capitalized when such costs are determined to extend the useful life of the asset or are part of acquiring the asset. Maintenance and repairs are charged to expenses are...
The following transactions and adjusting entries were completed by Legacy Furniture Co during a three year period wted to the use of delivery equipment. The double declining balance method of depreciation is Year 1 Jan 4 Nov 2 Dec 31 Purchased a used delivery truck for $29,200, paying cash. Pald garage $650 for miscellaneous repairs to the truck Recorded depreciation...
12-68 Petty Corporation has been depreciating equipment over a 10-year life on which costs $24,000, was purchased on January 1, 2016. The equi $6,000. On the basis of experience since acquisition, management has decided to a total life of 14 years instead of 10, with no change in the estimated residual al tive on January 1, 2020. The annual financial...