The balance sheets of HiROE, Inc., showed the following at December 31, 2011, and 2010: Required: a.
Question:
The balance sheets of HiROE, Inc., showed the following at December 31, 2011, and 2010:
Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2011? b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE, Inc., is eight years and that there is no estimated salvage value. Determine: 1. What the original cost of the equipment was. 2. What depreciation method is apparently being used. Explain your answer. 3. When the equipment was acquired. c. Assume that this equipment account represents the cost of 10 identical machines. Calculate the gain or loss on the sale of one of the machines on January 2, 2012, for $40,500. Use the horizontal model (or write the journal entry) to show the effect of the sale of themachine.
Salvage Value Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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December 31, 2011 December 31, 2010 Machine, less accumulated depreciation of $283,500 at December 31,2011, and $202,500 at December 31, 2010 $364,500 S445,500
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a Depreciation expense for 2011 is the increase in the amount of accumulated depreciation from the b...View the full answer
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