3. Company 2 has purchased the following equipment on January 1, 2000. The costs of the...

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3. Company 2 has purchased the following equipment on January 1, 2000. The costs of the assets are listed below. Use this information, to answer the questions below. (20 Points) $250,000 Equipment A Equipment B $150,000 Equipment C $100,000 a) What is the book value recorded for? (3 points) A B b) Assume that the company is depreciating equipment A using the straight-line depreciation method with a salvage value of $5,000 over a useful life of 10 years, Prepare the journal entries for the depreciation expense m year 2.(3 Points) c) Prepare the journal entries for equipment A in year 2 given that the equipment is depreciated using double-declining method.(3 points) For equipment B, the company has decided to use the Straight-line depreciation method. The estimated salvage value after 5 years of usage is $10,000. At the end of June in the second year, the company sold the equipment for $50,000. Prepare the journal entries associated with the sale. (Assume that the equipment was purchased at the beginning of the year) (6 points) c) The company has decided to use" units of production method for equipment C. The accountant has calculated that the depreciation per unit produced is $2.50. Gives that the equipment has a residual value of $12,000, what is the estimated numbers of units that can be produced by equipment C. (Assume that the equipment will not be modified)? (4 points) 3. Company 2 has purchased the following equipment on January 1, 2000. The costs of the assets are listed below. Use this information, to answer the questions below. (20 Points) $250,000 Equipment A Equipment B $150,000 Equipment C $100,000 a) What is the book value recorded for? (3 points) A B b) Assume that the company is depreciating equipment A using the straight-line depreciation method with a salvage value of $5,000 over a useful life of 10 years, Prepare the journal entries for the depreciation expense m year 2.(3 Points) c) Prepare the journal entries for equipment A in year 2 given that the equipment is depreciated using double-declining method.(3 points) For equipment B, the company has decided to use the Straight-line depreciation method. The estimated salvage value after 5 years of usage is $10,000. At the end of June in the second year, the company sold the equipment for $50,000. Prepare the journal entries associated with the sale. (Assume that the equipment was purchased at the beginning of the year) (6 points) c) The company has decided to use" units of production method for equipment C. The accountant has calculated that the depreciation per unit produced is $2.50. Gives that the equipment has a residual value of $12,000, what is the estimated numbers of units that can be produced by equipment C. (Assume that the equipment will not be modified)? (4 points)

Answer rating: 100% (QA)

a The book value recorded for an asset is the original cost of the asset minus its accumulated depreciation For Equipment A 250000 Accumulated Depreci... View the full answer