On January 1, 2020, the Vasquez SA ledger shows Equipment 32,000 and Accumulated DepreciationEquipment 9,000. The depreciation
Question:
On January 1, 2020, the Vasquez SA ledger shows Equipment €32,000 and Accumulated Depreciation—Equipment €9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and residual value of €2,000. On this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same residual value. Compute the revised annual depreciation.
Step by Step Answer:
Book value 1120 23000 Less Residu...View the full answer
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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 Business questions
-
On January 1, 2017, the Vasquez SA ledger shows Equipment 32,000 and Accumulated Depreciation-Equipment 9,000. The depreciation resulted from using the straight-line method with a useful life of 10...
-
On January 1, 2014, the Vasquez Company ledger shows Equipment $32,000 and Accumulated Depreciation-Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life...
-
On January 1, 2014, the Morgantown Company ledger shows Equipment $32,000 and Accumulated DepreciationEquipment $9,000. The depreciation resulted from using the straight-line method with a useful...
-
Write out the equation for the following chemical reaction and balance it. Solid potassium chlorate, KCIO3, decomposes to form solid potassium chloride and diatomic oxygen gas. What is the...
-
The central bright fringe in a single-slit diffraction pattern from light of wavelength 476 nm is 2.0 cm wide on a screen that is 1.05 m from the slit. (a) How wide is the slit? (b) How wide are the...
-
Delays at an airport depend on a number of factors: Morning (AM) flights are always on time if there is good weather. However, when there is bad weather half of the flights are delayed. For the rest...
-
Political Parties In a preelection survey of likely voters, political parties of respondents are identified as 1 for a Democrat, 2 for a Republican, 3 for an Independent, and 4 for anything else. The...
-
Consider the following information: 1. On December 1, 2005, a U.S. firm plans to sell a piece of equipment [with an asking price of 200,000 units of a foreign currency (FC)] during January of 2006....
-
KW (your laundry detergent company) decided to invest in an analytics program to improve competitive performance. You are faced with the challenge of managing more and more data, and your users are...
-
The personnel director of Dollar Finance Corp. must assign three recently hired college graduates to three regional offices. The three new loan officers are equally well qualified, so the decision...
-
Kowloon Group purchased land and a building on January 1, 2020. Managements best estimate of the value of the land was HK$1,000,000 and of the building HK$2,000,000. However, management told the...
-
Prepare journal entries to record the following. a. Matterhorn AG retires its delivery equipment, which cost CHF44,000. Accumulated depreciation is also CHF44,000 on this delivery equipment. No...
-
Consider a wideband PM signal produced by a sinusoidal modulating wave A m cos (2 m t), using a modulator with a phase sensitivity equal to k p radius per volt. (a) Show that if the maximum phase...
-
Suppose the lifetime of a television picture tube is distributed exponentially with a standard deviation of 1,400 h. Find the probability that the tube will last: (a) More than 3,000 h (b) Less than...
-
A random sample of 75 observations from a population yielded the following summary statistics: Construct a 95 % confidence interval for the population mean m. x=1,270 x = 21,520
-
From time to time, managers may be faced with the need to change the internal rules of the game within their MNE. What skills and capabilities may be useful in achieving this?
-
The data entry operation in a large computer department claims that it gives its customers a turnaround time of 6.0 h or less. To test this claim, one of the customers took a sample of 36 jobs and...
-
Find the probability that an exponentially distributed random variable X with mean 1/ = 8 will take on the values: (a) Between 2 and 7 (b) Less than 9 (c) Greater than 6 (d) Between 1 and 15
-
Use the birth weights (grams) of the 400 babies listed in Data Set 4 "Births" in Appendix B. Examine the list of birth weights to make an observation about those numbers. How does that observation...
-
a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as a tax haven? c. What are the advantages leading an MNE to use a tax haven...
-
Use the same data from BE19???10 above and the data below. Determine the missingamounts. Total Manufacturing Costs Work in Process Cost of Goods Manufactured Work in Process (1/1) (12/31) $82,000...
-
Indicate whether the following statements are true or false. 1. Managerial accountants explain and report manufacturing and nonmanufacturing costs, determine cost behaviors, and perform C-V-P...
-
Indicate whether the following statements are true or false. 1. Managerial accountants explain and report manufacturing and nonmanufacturing costs, determine cost behaviors, and perform C-V-P...
-
3) Find at least 3 syntax errors in the following program. Circle each error's location, and write a few words describing the error, next to your circle: // Silly test example program with syntax...
-
Write a program named PointToPointDistance that reads in the x- and y- coordinates of two points and prints their distance from each other. There are no prompts or output labels. So, if the input was...
-
Let P(x | C;) ~ N(;, ) for a two-category, one-dimensional classification problem with classes C1 and C2, P(C) = P(C2) = 1/2, and > . (a) Find the Bayes optimal decision boundary and the...
Study smarter with the SolutionInn App