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ABC Solutions Co. acquired timber rights during the current period ended December 31. They purchased timber rights for $1,000,000 on March 2. The length
ABC Solutions Co. acquired timber rights during the current period ended December 31. They purchased timber rights for $1,000,000 on March 2. The length of the timber is estimated at 3,000,000 board feet. During the current year, 500,000 board feet of timber were cut and sold. Journalize the adjusting entry to record the depletion. (4 pts) J's Meat shop purchased a machine for $45,000 on January 1, Year 1 estimated initially to have a useful life of 10 years with a residual value of $7,000. At the beginning of the third year, it was determined that due to obsolescence, the remaining useful life of the machine is 5 years with a revised residual value of $2,000. Use straight-line method. Calculate the depreciation expense for year 4 (Hint: this would be after the useful life, and residual got revised. (3 pts) A printer acquired at the beginning of year 2019, had a cost of $2,000 has an estimated useful life of five years, an estimated residual value of $200 and is expected to print 12,000 papers total. It printed 5,200 papers in the first year, 1,900 papers in the second year; 3,750 papers in the third year: 850 papers in the fourth year and 500 papers in the fifth year. Journalize the depreciation expense for year 2 using units of activity method. State date in the journal (4 pts)
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1 The adjusting entry to record depletion Given the information Cost of Timber Rights 1000000 Estimated Total Units of Timber 3000000 board feet Actua...Get Instant Access to Expert-Tailored Solutions
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