1. Given the following information: Equipment purchased January 1, 2028 for $732,000 Salvage value $13,000...
Question:
1. Given the following information:
• Equipment purchased January 1, 2028 for $732,000
• Salvage value $13,000
• Depreciation of 8 years using double-declining balance method
a) What is the book value at 12/31/33?
b) What is the depreciation expense for 2030?
c) What is the book value at 1/1/2033?
d) What is the depreciate on expense for year 8?
e) What is the accumulated depreciate on at 12/31/2035?
Required: Show all work using Excel
2. Given the following:
• Equipment with an original cost of $455,000 and accumulated depreciation of $172,000 is traded for a new piece of equipment with a fair value of $285,000
• Cash of $7,000 is received.
a) What should the company record as the cost of the new asset?
b) How much gain is recognized?
c) What is the journal entry to record the cost of the new asset?
Required: Show all work using Excel (spreadsheet should be properly formatted with formulas)
3. Given the following:
• Office furniture with an original cost of $102,000 and a book value of $48,000 is traded for machinery with a FMV of $56,000.
• Cash of $11,000 is paid.
a) What is the fair value of the old asset?
b) Record the journal entry for the transaction.
Required: Show all work using Excel (spreadsheet should be properly formatted with formulas)
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik