On January 1, 2008, the company purchased equipment for $400,000. The equipment has an 8-year expected useful
Question:
On January 1, 2008, the company purchased equipment for $400,000. The equipment has an 8-year expected useful life and $0 residual value. Initially, the company used straight-line depreciation. On January 1, 2011, the company changed to double-declining-balance depreciation. Compute depreciation expense for 2011. Ignore income taxes.
Step by Step Answer:
Straightline depreciation 400000 08 years 50000 per year Depreciation Accumulated Book Year Amo...View the full answer
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
On January 1, 2005, the company purchased equipment for $100,000. The equipment has a 10-year expected useful life and $0 residual value. Initially, the company used double declining- balance...
-
On January 1, 2010, the company purchased equipment for $600,000. The equipment has a 20-year expected useful life and $0 residual value. Initially, the company used double-declining-balance...
-
On January 1, 2009, the company purchased equipment for $200,000. Originally, the equipment had a 12-year expected useful life and $8,000 residual value. The company uses straight-line depreciation....
-
what is the name of Dc output symbol on eagle in this circuit? XL2 EE20 core Flyback Transformer 4 SCHOTTKY [ 3 D4 SB160 IC2 EL817 OPTOCOUPLER thS 1 2 C2 470uF 25V R3 Tko ZD1 12V/1W DC Output 12V,...
-
An experiment was performed to compare the fracture toughness of high-purity 18 Ni maraging steel with commercial-purity steel of the same type (Corrosion Science, 1971: 723-736). For m = 32...
-
Martin Battle runs a business and maintains a petty cash book using the imprest system. The cash float is 150. For June 2020 his petty cash transactions were as below: Required: (a) Write up the...
-
Explain the difference between a. Actors and stakeholders. b. Primary and supporting actors.
-
Is the auditor's liability affected if the third party was unknown rather than known? Explain.
-
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
-
Draw enantiomers for each of the following compounds using: a. perspective formulas b. Fischer projections CH CH 1. CHjCHCH2H 2. CICH2CH2CHCH2CH3 3. CHjCHCHCHj
-
Refer to Practice 20-2. Assume that before 2011 the company used straight-line depreciation for tax purposes while using double-declining-balance depreciation for book purposes. The change to...
-
As of January 1, 2011, the company decided to change from the LIFO method of inventory valuation to the FIFO method. The change is being made for both book and tax purposes. Data for the past four...
-
Add the binary numbers. 10011 + 11010
-
Match each description 1 through 4 with the characteristic of preferred stock that it best describes by writing the letter of that characteristic in the blank next to each description. A. Cumulative...
-
Use Eq. (13.13) to reduce one of the following isothermal data sets, and compare the result with that obtained by application of Eq. (13.19). Recall that reduction means developing a numerical...
-
During a given year, the following activities occur: i. A silver mining company pays its workers $200,000 to mine 75 pounds of silver. The silver is then sold to a jewelry manufacturer for $300,000....
-
Suppose that you are the owner of a professional baseball team in a major city, and MLB allows a second team to locate in your city. On what basis should you be compensated?
-
How might the policy changes in parts a through e affect the wage gap between low-skill and high-skill workers in the United States? a. Increased spending on computers in public schools. b....
-
For Bill, clothing has a marginal utility of 24 utils and food has a marginal utility of 24 utils. If clothing costs $4 and food $8, is Bill doing the best he can? If not, what can he do to increase...
-
Borrowing costs should be recognised as an expense and charged to the profit and loss account of the period in which they are incurred : A. If the borrowing costs relate to qualifying asset B. If the...
-
If good X has a price elasticity of demand equal to 2 and good Y has a coefficient equal to 2.5, which has a more elastic demand? Explain.
-
Depreciation ComputationsSYD, DDBPartial Periods Cosby Company purchased a new plant asset on April 1, 2010, at a cost of $774,000. It was estimated to have a service life of 20 years and a salvage...
-
Depreciation ComputationsFive Methods Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000,...
-
Depreciation ComputationsFour Methods Maserati Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the...
-
An analysis of the activities needed to produce each product has been conducted. In addition, estimates have been developed. These are in the table below. Match the OH rate with the activity for each...
-
Service business 1. You are required to form a small business (Service business) 2. Explain the name and nature of the business, location, mission and objectives of the company. Assume the business...
-
Cost of utilities Cost per month (In dollars) $20,000 4. The cost of utilities depends on how many wards the hospital needs to use during a particular month. During months with activity under 2,000...
Study smarter with the SolutionInn App