Yorkton Company purchased for $415,000 equipment having an estimated useful life of 10 years with an estimated
Question:
Yorkton Company purchased for $415,000 equipment having an estimated useful life of 10 years with an estimated residual value of $25,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end.
Required
Complete the following schedules (round calculations to the nearest whole dollar):
1. Assuming the purchase was made on January 1, 2020.
2. Assuming the purchase was made on July 1, 2020.
2020 2021 2022 A. Double-declining-balance method Equipment . Less: Accumulated depreciation Year-end book value.. Depreciation expense for the year B. Straight-line method. Equipment. Less: Accumulated depreciation. Year-end book value.. Depreciation expense for the year
Step by Step Answer:
1 Purchased January 1 2020 2020 2021 2022 A Doubledecliningbalance method Equipment 415000 415000 41...View the full answer
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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
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