Alteran Corporation purchased office equipment for $1.5 million at the beginning of 2022. The equipment is being
Question:
Alteran Corporation purchased office equipment for $1.5 million at the beginning of 2022. The equipment is being depreciated over a 10-year life using the double-declining-balance method. The residual value is expected to be $300,000. At the beginning of 2024 (two years later), Alteran decided to change to the straight-line depreciation method for this equipment.
Required:
Prepare the journal entry to record depreciation for the year ended December 31, 2024.
Step by Step Answer:
DDB depreciation 2022 1500000 210 2023 1500000300000 210 1500000 Cost 540000 9600...View the full answer
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
-
Alteran Corporation purchased office equipment for $1.5 million in 2013. The equipment is being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is...
-
Alteran Corporation purchased office equipment for $1.5 million in 2015. The equipment is being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is...
-
Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....
-
Melissa is a sole trader. Her capital gains and capital losses for 2020-21 are 27,000 and 700 respectively. She has capital losses brought forward from 2019-20 of 12,900 and she also has unrelieved...
-
Any good Southern breakfast includes grits (which my wife loves) and bacon (which I love). Suppose we allocate $60 per week to consumption of grits and bacon, that grits cost $2 per box and bacon...
-
Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings' required return?
-
Describe the Waterfall Development Model, its characteristics, and shortcomings.
-
Haskell Brothers Products Inc. manufactures a liquid product in one department. Due to the nature of the product and the process, units are regularly lost at the beginning of production. Materials...
-
Components of a heat pump for supplying heated air to a dwelling are shown in the schematic below. At steady state. Refrigerant 22 enters the compressor at -5 degree C, 3.5 bar and is compressed...
-
The Big Bang Theory, a situation comedy featuring Johnny Galecki, Jim Parsons, and Kaley Cuoco, is one of the most watched programs on network television. The first two episodes for the 2011-2012...
-
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,560,000. Its useful life was...
-
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated...
-
At a certain voltage applied to an X-ray tube with aluminium anticathode the short-wave cut-off wavelength of the continuous X-ray spectrum is equal to 0.50 nm. Will the K series of the...
-
Match the control system components in List I with their function in List II and select the correct answer using the codes given below the lists: List I A. Servo motor B. Amplidyne C. Potentiometer...
-
Which of the following can be included in a control system such that total number of poles and zeros, does not change? (a) Amplidyne (b) DC servo motor (c) tachometer (d) AC servo motor.
-
The linear model of a robot arm system being driven by a DC motor, is shown in Fig. P 9.9 (a). The system variables and parameters are given below: (a) Write equations describing dynamics of system...
-
In case of synchro error detector, the electrical zero position of control transformer is obtained when angular displacement between rotors, is (a) \(0^{\circ}\) (b) \(45^{\circ}\) (c) \(90^{\circ}\)...
-
Which of the following components can be used as a rotating amplifier in a control system? 1. An amplidyne 2. A separately excited DC generator 3. A self-excited DC generator 4. A synchro Select the...
-
Is mandatorily redeemable preferred stock classified as equity? Explain.
-
(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...
-
In 2011, Wade Window and Glass changed its inventory method from FIFO to LIFO. Inventory at the end of 2010 is $150,000. Describe the steps Wade Window and Glass should take to report this change.
-
In 2011, Winslow International, Inc.'s controller discovered that ending inventories for 2009 and 2010 were overstated by $200,000 and $500,000, respectively. Determine the effect of the errors on...
-
Refer to the situation described in BE 9-14. What steps would be taken to report the error in the 2011 financial statements?
-
Assume that in Bolivia it takes 9 0 hours of labor to produce a ton of salt and 6 0 hours of labor to produce a ton of soybean oil. In addition, assume that in Brazil it takes 8 0 hours of labor to...
-
Should governors have centralized power, particularly when dealing with crisis situations? Or should the formal power of the governor remain relatively weak? (You are required to write 100-150 words)
-
Each scoop of ice cream costs $ 6 . Your benefit associated with each scoop decreases with each additional scoop because you start to get a stomach ache. How many scoops of ice cream should you eat...
Study smarter with the SolutionInn App