Tatsuo Corporation purchased farm equipment on January 1, 2019, for $299,000. In 2019 and 2020, Tatsuo...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tatsuo Corporation purchased farm equipment on January 1, 2019, for $299,000. In 2019 and 2020, Tatsuo depreciated the asset on a straight-line basis with an estimated useful life of five years and a $114,000 residual value. In 2021, due to changes in technology, Tatsuo revised the residual value to $33,000 but still plans to use the equipment for the full five years. What depreciation would Tatsuo record for the year 2021 on this equipment? Tatsuo Corporation purchased farm equipment on January 1, 2019, for $299,000. In 2019 and 2020, Tatsuo depreciated the asset on a straight-line basis with an estimated useful life of five years and a $114,000 residual value. In 2021, due to changes in technology, Tatsuo revised the residual value to $33,000 but still plans to use the equipment for the full five years. What depreciation would Tatsuo record for the year 2021 on this equipment?
Expert Answer:
Answer rating: 100% (QA)
The depreciable base for the farm equipment is its original cost minus its estimated residual value ... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...
-
The financial year for companies below ends on 31 December. (a) COMPANY 1 purchased a computer for $13,000 on 1 July 2020. The company intends to depreciate it over 4 years using the double-declining...
-
This problem continues our accounting for Pure Water, Inc., from Chapter 7 . During 2012, Pure Water made the following purchases: On May 3, Pure Water, Inc., purchased a copy machine for $2,400...
-
We can measure how good a center Kevin Bacon is by computing each performer's Hollywood number or average path length. The Hollywood number of Kevin Bacon is the average Bacon number of all the...
-
Assume now that it is several years later. The brothers are concerned about the firm's current credit terms, which are now net 30, which means that contractors buying building products from the firm...
-
Use the figures to evaluate function if f(x) = sin x, g(x) = cos x, and h(x) = tan x. g( + ) 2 + ? 3 4 2 + 2 3 1 (x, 1) 3.
-
Don Cox questions the usefulness of a master sales budget in evaluating sales performance. Is there justification for Don's concern? Explain.
-
As in all areas of IT, DBMSs are constantly changing and improving. Research how businesses are using DBMSs, and write a report of your findings. Address the following issues: 1. Which popular DBMS...
-
Ms Indy opened uChampion Painters (UCP) on 1 June 2021. On 31 May 2022, records show the following accounts: $'000 Ms Indy Capital 7200 Salaries expense 1408 Cash at bank 784 Accounts payable 864 Ms...
-
Complete the diagram below, which shows the flux of alanine's amino group from its entry into the liver to its exit as urea. NAD(P) NAD(P)H 2 Alanine 2 -Ketoglutarate 2 ATP HCO,- 2 ADP+2P...
-
What is a normative theory? Discuss its use in Accounting?
-
inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Inventory at Cost Index Year Ended...
-
Suppose that for a product in a competitive market, the demand function is p = 800 3 x and the supply function is p = 200 + 3 x , where x is the number of units and p is in dollars. A firm's average...
-
20.4 Measurements of the fast neutron cycle time were made on EBR-I, the first reactor to pro- duce electricity. Calculate its value in two different ways: (a) With the ratio Br/l, called the...
-
64. Which is correct set :- 65. (1) Grignard's reagent = Mg (2) Franckland's reagent = Zn (3) Tollen's reagent = Ag (4) TEL = Ti OH Br+HO major product OH (1) O (3) Br OH Br Br OH Br OH Br- Br (4) Br
-
Daly Publishing Corporation recently purchased a truck for $44,000. Under MACRS, the first year's depreciation was $8,800. The truck driver's salary in the first year of operation was $63,600. The...
-
What is the profitability index of a project that costs $10,000 and provides cash flows of $3,300 in years 1 and 2 and $5,300 in years 3 and 4? The discount rate is 9%. Note: Do not round...
-
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
-
In 2013, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $350,000 cost of a machine purchased on January 1, 2010. The machines life was expected to be...
-
In 2013, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2012 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2013 is...
-
In 2013, the controller of Sytec Corporation discovered that $42,000 of inventory purchases were incorrectly charged to advertising expense in 2012. In addition, the 2012 year-end inventory count...
-
A You are required to calculate the overhead variances of Raymond Ltd. The budget is prepared as: (a) Total budgeted variable overhead \( 100,000\). (b) Total budgeted fixed overhead \( 125,000\)....
-
You are required to calculate the overhead variances from the following data. (a) Budgeted for \( 6,000\) variable overhead and 1,000 machine hours. \(\begin{array}{lr}\text { Actual overhead } & ...
-
A You are required to calculate the overhead variances in the following cases: (a) Budgeted for \( 37,000\) fixed overhead. The actual fixed overhead turns out to be \( 36,420\). (b) Budgeted for...
Study smarter with the SolutionInn App