On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, the company determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated salvage value will only be $10,000. Prepare the journal entry to record depreciation expense for Year 1. Prepare the journal entry to record depreciation expense for Year 2. On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, the company determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated salvage value will only be $10,000. Prepare the journal entry to record depreciation expense for Year 1. Prepare the journal entry to record depreciation expense for Year 2.
Expert Answer:
Answer rating: 100% (QA)
Calculations Year 1 Cost of system 1 480 000 Useful life 3 years ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these economics questions
-
On October 1, 2015, Lyndon, Inc. purchased a computer system for $86,000 from AIT Systems. The computer system had an estimated life of five years and residual value of $3,000. Lyndon paid $2,820 for...
-
1. (2 points) Prove or disprove that the sum of any even integer and any odd integer is odd.
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
On July 31, 2023, Magnuss Muffins paid $18,000 for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a year-end...
-
In a jet engine, liquid C12 H26 at 77 8F is added to air at 77 8F in the insulated engine of Fig. 12.27 and burned. If the fuel is burned with 80% excess air and the products of combustion leave the...
-
For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was the CEO. He was not involved in the fraud, however, and was never charged with a...
-
A large company has the opportunity to select one of seven projects-A, B, C, D, E, F, G-or choose the null (donothing) alternative. Each project requires a single initial investment as shown in the...
-
The Raattama Corporation had sales of $3.5 million last year, and it earned a 5% return (after taxes) on sales. Recently, the company has fallen behind in its accounts payable. Although its terms of...
-
How to create a relational model from DDL statements and how you save a relational model design.?
-
Google is considering a project to move a fraction of its workforce out of Silicon Valley to a cheaper, more efficient location. There are two alternatives. Project 1: the initial move costs $45...
-
Prove that the set (23": m,ne Z) is a group with respect to multiplication. Be sure to identify any properties of Zor R that you use in your proof,
-
Today Mario owes $1,500 due in 3 years at an effective rate of 15%, plus owes $3000 due in 5 years at 20% simple interest, negotiates cancellation your debt in two equal payments, the first two years...
-
A bond offers a $50 coupon, has a face value of $1,000, and 15 years until maturity. If the interest rate is 4.5%, what is the value of the bond?
-
Susan formed a new corporation of which she is the sole shareholder. In a 351 exchange, she transferred propert that had an adjustment basis to her of $175000 and a fair market value of $25,000 in...
-
Outline process you would take to effectively design and develop a training for new social medium employees and regards to privacy and data safety
-
On January 1, 2018, Ms. D. Nagkulang invested P1,000,000 to BDO's 5-year, tax-free time deposit. The long term deposit pays 10% annual interest every January 1. In need of cash, she pre-terminated...
-
Naomi Osaka and Simone Biles have both been in the news because they pulled out of competitions due to mental health. Additionally, Damar Hamlin suffered cardiac arrest while playing in an NFL game....
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
Jackson Corporation employs 45 production workers and pays them all the same salary. Jackson employs 10 administrative staff personnel and pays them all the same salary. The following annual...
-
On December 31, an entity analyzed a finite life trademark with a net carrying value of $750,000 for impairment. The entity determined the following: Fair value (less costs to sell) $ 700,000 Present...
-
How is the allocation of capital linked to the demand for financial reporting?
-
What is the minimum speed for orbiting Earth in a close orbit? What is the maximum speed? What happens above this speed?
-
What connection did Newton make between a falling apple and the Moon?
-
Why will a projectile that moves horizontally at 8 km/s follow a curve that matches the curvature of Earth?
Study smarter with the SolutionInn App