Depreciation Calculate the annual depreciation for the following assets for the entire lifespan of each asset. Each asset will have a different method to utilize. In addition, complete the applicable journal entries for each asset for tax year 2014 using the journal entry template.

Land: 25 acres valued at $56,000, inherited, currently in Year 2.

Warehouse: Built-in 2012—started to use on 1/6/2012, basis $39,000, residual value $10,000, 30-year life uses straight-line depreciation—currently in year three.

Machinery: Straight line cost $22,000, $6,000 residual value, five-year life—purchased 10/1/2012, currently in year three.

2010 Truck: Cost $20,000, no residual value, four years, purchased and started using on 1/1/2014—currently year two.

Cost of Goods Sold

Calculate the cost of goods sold using LIFO for the equipment sold, using the following information. Use those cumulative amounts, to calculate the gross income for 2014.

1. Blood Pressure Monitors: 2014 Annual sales of 250 units Ending Inventory is 60 units.

Units		Unit Cost		Total Cost
Beginning Inventory	257		350		$89,950
Purchase 1	85		345		$29,325
Purchase 2	300		330		$99,000

2. Ultrasound Scanners:

2014 Annual sales of 2,600 units

Ending Inventory is 1,350.

Units		Unit Cost		Total Cost
Beginning Inventory	654		400		$261,600
Purchase 1	250		435		$108,750
Purchase 2	1000		400		$40,000

Ensure that you include detailed calculations that helped you to arrive at the solution.

Submission Requirements:

Submit the updated journal entries template and your response as a Word document to the instructor for evaluation.

Font: Arial, 12 point

Line spacing: Double

Answer rating: 100% (QA)

Answer The journal entry for depreciation on assets for the year 2014 is as under The asset land is not depreciated therefore no depreciation expense ... View the full answer