Equipment acquired on January 6 at a cost of $401,000 has an estimated useful life of 18
Question:
Equipment acquired on January 6 at a cost of $401,000 has an estimated useful life of 18 years and an estimated residual value of $25,100.
a. What was the annual amount of depreciation for the Years 1–3 using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of Year 4?
c. Assuming that the equipment was sold on January 3 of Year 4 for $315,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $342,000 instead of $310,000, journalize the entry to record the sale.
Step by Step Answer:
a The straightline method of depreciation calculates the annual depreciation by dividing the d...View the full answer
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000. a. What was the annual amount of depreciation for the Years...
-
A Kubota tractor acquired on January 6 at a cost of $90,000 has an estimated useful life of 20 years. Assuming that it will have no residual value, determine the depreciation for each of the first...
-
Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight line method. a. What was...
-
A 40-cm-long, 800-W electric resistance heating element with diameter 0.5 cm and surface temperature 120C is immersed in 75 kg of water initially at 20C. Determine how long it will take for this...
-
When do externalities require government intervention, and when is such intervention unlikely to be necessary?
-
The following information (dollars in millions) is for Canadian Tire Corporation, Limited. Instructions a. Calculate the gross profit margin, profit margin, and current ratio for each year. b....
-
Recall, requests for admission are written statements that force a party to admit or deny a fact or a documents genuineness. Further investigate CCP 2033.010-2033.080, which govern requests for...
-
Subsidiary Company S had the following stockholders equity on January 1, 2014, prior to issuing 20,000 additional new shares to non-controlling shareholders: Common stock ($1par), 100,000 shares...
-
Wildhorse Company's income statement for the year ended December 31, 2025, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) $619,000...
-
You, CPA, work as a consultant on various engagements. Your client, Over The Edge Ltd. (OTE), has grown from a small custom snowboard manufacturer servicing the local market to a multinational...
-
Financial statement data for years ending December 31 for Xiong Company follow: a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio...
-
Equipment acquired at the beginning of the year at a cost of $540,000 has an estimated residual value of $40,000 and an estimated useful life of 10 years. Determine (a) The double-declining-balance...
-
In March 2016, Jones Company purchased a Mercedes for use in its business at a cost of $73,000. Assuming no bonus depreciation or Section 179 deductions, calculate the allowable tax depreciation on...
-
In recent years, the digital landscape has grown exponentially, providing numerous benefits but also giving rise to new forms of victimization such as cyberstalking. This week, we'll delve into this...
-
Now that you know a bit about BNF's, try writing a grammar(productions) for the "language" of a phonenumber , which consists of: three digits enclosed in parentheses - the first digit cannotbe "0"...
-
QUESTION: PLEASE CAN I GET THE SOURCE/REFERENCE OF THE BELOW RESPONSE ? 1. Daniel, entrusted with addressing security issues afflicting a developing organisation, must first compile information via...
-
You are a Canadian exporter scheduled to receive a payment of USD 1,000,000 from the US buyer in 30 days. One USX call option is 10,000 USD. USX call options and put options are available with an...
-
What role does ethical leadership play in shaping the ethical climate of organizations, influencing employee perceptions of fairness, integrity, and accountability, and how do ethical considerations...
-
Write about on Women in the military containing, why, how, what are fundamental things to learn from such women.
-
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
-
What are the three ways that other comprehensive income may be displayed (reported)?
-
How should the disposal of a component of a business be disclosed in the income statement?
-
How should the disposal of a component of a business be disclosed in the income statement?
-
Suppose a box of mass m slides toward a spring with a speed of vi, presses 1.00 m into the spring, and then bounces away with a final speed of 15.0 m/s . Find the initial speed of the box. Take into...
-
First, take a brief look at the https://drive.google.com/file/d/1ipcMFg3KBbMnHLKi1t9yx1THFwaGJigy/view?usp=sharing (State of the Global Workplace. 2021 Report). After that, as an MBA/MSSL student,...
-
1. Write a reflection on advantages and disadvantages of a major decision you took a. A self-evaluation the advantages and disadvantages (on a scale from 1-10). b. A justification for your...
Study smarter with the SolutionInn App