On January 1, 2008, the company purchased equipment for $600,000. The equipment has a 20-year expected useful
Question:
On January 1, 2008, 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 depreciation. On January 1, 2011, the company changed to straight-line depreciation. The expected useful life and residual value are unchanged. Compute depreciation expense for 2011. Ignore income taxes.
Step by Step Answer:
Doubledecliningbalance percentage 10020 years 2 10 Depreciation Accumulated Book Year Computati...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, 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....
-
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...
-
The dimension of a services cape where the background characteristics of the environment that are meant to satisfy our five senses and include things such as temperature, lighting, noise, music, and...
-
The accompanying summary data on total cholesterol level (mmol/l) was obtained from a sample of Asian postmenopausal women who were vegans and another sample of such women who were omnivores...
-
You are to enter up the sales, purchases, returns inwards and returns outwards day books from the following details, then to post the items to the relevant accounts in the sales and purchases...
-
What are the basic elements of a use case diagram?
-
On April 1, 2011, Jennifer Stafford created a new travel agency, See-It-Now Travel. The following transactions occurred during the companys first month. April 1 Stafford invested $20,000 cash and...
-
Chang Company provided the following data for this year: Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory...
-
For a library, the entity type HOLDING has four subtypes: BOOK, AUDIO BOOK, DVD, and SOFTWARE. Draw a separate EER diagram segment for each of the following situations: a. At a given time, a holding...
-
On January 1, 2007, the company purchased equipment for $100,000. Originally, the equipment had a 12-year expected useful life and $4,000 residual value. The company uses straight-line depreciation....
-
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...
-
A researcher models the temperature T (in degrees Celsius) during the time period from 6 A.M. to 6 P.M. in a certain city by the function where t is the number of hours after 6 A.M. a. Sketch the...
-
Label each of the following statements true, false, or uncertain. Explain briefly. a. The IS curve shifts to the right with an increase in \(G\), to the right with an increase in \(T\), and to the...
-
Vanguard is one of the worlds largest asset management companies. The firm has built a $7.2 trillion asset management empire by selling low-cost index funds to individual investors, primarily in...
-
We showed that a reduction in the interest rate in an economy operating under flexible exchange rates leads to an increase in output and a depreciation of the domestic currency. a. How does the...
-
Established in 1891 in Holland, Philips is one of the worlds oldest multinationals. The company began making lighting products and over time diversified into a range of businesses that included...
-
What are the values of control signals generated by the control in Figure 4.2 for this instruction? Figure 4.2 Different instructions utilize different hardware blocks in the basic single-cycle...
-
Suppose a market has only three consumers. Derive the market demand curve from this table. Consumer ABC $4 20 0 10 Quantity Demanded $3 28 4 12 Price $2 32 8 20 $1 44 12 32
-
g(x) = x 5 5x 6 a. Show that g(x) = 0 has a root, , between x = 1 and x = 2. b. Show that the equation g(x) = 0 can be written as x = (px + q) 1/r , where p, q and r are integers to be found. The...
-
If good X has a price elasticity of demand equal to 2 and the price increases by 10 percent, then by what percent will the quantity demanded change? Explain.
-
In its 2007 annual report Campbell Soup Company reports beginning-of-the-year total assets of $7,745 million, end-of-the-year total assets of $6,445 million, total sales of $7,867 million, and net...
-
Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2010. The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years....
-
Lansbury Company purchases equipment on January 1, Year 1, at a cost of $518,000. The asset is expected to have a service life of 12 years and a salvage value of $50,000. (a) Compute the amount of...
-
Cases that raise substantial amount of interest in the use of "advanced directives" which allow individuals to put in writing their wishes regarding incapacitation or authorizing a proxy to make...
-
You are a college senior, interning at a company that is about to celebrate its first anniversary in business and is throwing a big party for its employees, customers and suppliers. It will need 10...
-
A marketing firm is hiring 3 new employees. Their job duties entail developing new marketing plans and to appear at certain promotional events. After all the candidates are interviewed, the marketing...
Study smarter with the SolutionInn App