The following select data has been extracted from Reelo Inc.s financial records relating to equipment acquisitions during
Question:
The following select data has been extracted from Reelo Inc.’s financial records relating to equipment acquisitions during 20X7 and 20X8.
On 31 December 20X8 equipment was retired which had an original cost of $56,000. The retirement had been acquired as part of the 1 January 20X7 acquisition. There were no proceeds upon retirement of the equipment.
Required:
Prepare a schedule, along with supporting calculations, showing the amount of depreciation expense and accumulated depreciation for 20X7 and 20X8, using straight-line depreciation. Reelo Inc. depreciates equipment according to the number of months of ownership in the year of acquisition or retirement. Round to the nearest dollar.
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 9781260881233
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel