Oki Company pays $260,550 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment.

1. During the second year of the equipment?s life, $18,650 cash is paid for a new component expected to increase the equipment?s life, $18,650 cash is paid for a new component expected to increase the equipment?s productivity by 10% a year.

Compute (1) the machine?s book value at the end of its second year and (2) the amount of depreciation for each of the final three years given the revised estimate. (Do not round your intermediate calculations.)

1. During the second year of the equipment?s life, $18650 cash is paid for a new components expected to increase the equipment?s productivity by 10% a year.

2. During the third year $4663 cash is paid for normal repairs necessary to keep the equipment in good working order.

3. During the fourth year $11600 is paid for repairs expected to increase the useful life of the equipment from four to five years

Determine the machine?s second-year depreciation and year end book value under the straight-line method.

1. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return.

2. Diaz sold the machine for $16,100 cash.

3. Diaz sold the machine for $35,600 cash.

4. Diaz sold the machine for $40,300 cash.

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Oki Company pays $260,550 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. During the second year of the equipment's life, $18,650 cash is paid for a new component expected to increase the equipment's productivity by 10% a year. view transaction list Journal Entry Worksheet view general journal Record the betterment cost of $18,650 cash. Event 1 done General Journal Debit Credit *Enter debits before credits clear transaction record transaction Oki Company pays $260,550 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. During the second year of the equipment's life, $18,650 cash is paid for a new component expected to increase the equipment's productivity by 10% a year. view transaction list Journal Entry Worksheet view general journal Record the betterment cost of $18,650 cash. Event 1 done General Journal Debit Credit *Enter debits before credits clear transaction record transaction

Answer rating: 100% (QA)

Compute 1 the machines book value at the end of its second year and 2 the amount of depreciation for each of the final three years given the revised e... View the full answer