Boat Ltd . has a major asset that has just been purchased and has been segregated into
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Question:
Boat Ltd has a major asset that has just been purchased and has been segregated into the following significant components made up of spare parts and major inspections. Component D consists of a group of insignificant components lumped together with an average cost and useful life.
Component Quantity Original Unit Cost Residual Value Useful Life
A $ $ years
B years
C years
D years
Required:
Assuming straightline is the appropriate method of depreciation, what is the amount of depreciation in year Round down the intermediate calculations to the nearest whole dollar. Round final answer to nearest whole dollar.
a This part of the question is not part of your Connect assignment.
b The new major spare part has a value of $ Prepare the journal entry that would be recorded when unit of component B is replaced at the end of year If no entry is required for a transactionevent select No journal entry required" in the first account field. Round the intermediate calculations to two decimal places.
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
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