(e) Assume the information given in part (c) with respect to the cost components. The equipment...
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(e) Assume the information given in part (c) with respect to the cost components. The equipment is expected to provide benefits evenly over time. Also assume that the equipment has a salvage value of $32,000 and a physical life of 14 years. The salvage values of the input device, processor, and output device are $3,000, $10,000, and $19,000, respectively. The physical lives of the input device, processor, and output device are 6 years, 12 years, and 14 years, respectively. Calculate the amount of depreciation for 2023, 2024, and 2025 using the straight-line method. Sandhill prepares financial statements under ASPE. (Round answer to O decimal places, e.g. 5,275.) Depreciation 2023 2024 2025 +A $ $ +A $ LA Sandhill Company Ltd. buys equipment on January 1, 2023, for $323,000 cash. The asset is expected to have a useful life of 12 years and a residual value of $35,000. Sandhill prepares financial statements under IFRS. (a) Your answer is correct. Calculate the amount of depreciation for each of 2023, 2024, and 2025 using the straight-line method. Depreciation 2023 2024 2025 $ +A eTextbook and Media 24000 24000 24000 Attempts: 1 of 3 used double-declining-balance method. (Round Calculate the amount of depreciation for each of 2023, 2024, and 2025 using the percentage to 2 decimal places e.g. 52.75 and round final answers to the nearest dollar, e.g. 5,275.) 2023 +A $ Depreciation 53833.33 2024 2025 (c) +A +A 44861.11 $ 37384.26 eTextbook and Media Your answer is correct. Assistance Used Attempts: 1 of 3 used Assume that the equipment consists of an input device with a cost of $30,000, residual value of $5,000, and useful life of 5 years; a processor with a cost of $120,000, residual value of $12,000, and useful life of 10 years; and an output device with a cost of $173,000, residual value of $22,000, and useful life of 12 years. Prepare the journal entry to record the purchase on January 1, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment - Input Device Equipment - Processor Debit 30000 120000 Equipment - Output Device 173000 Cash Credit 323000 (d) Your answer is correct. Assume the information given in part (c) above. Also assume that the benefits of the input device and processor are expected to flow to Sandhill evenly over time, but that the output device is expected to provide the greatest benefits in the early years. Calculate the amount of depreciation for 2023 using the most appropriate methods. (Round percentage to 2 decimal places e.g. 52.75 and round final answers to the nearest dollar, e.g. 5,275.) Depreciation for 2023 +A $ 44633.33 (e) Assume the information given in part (c) with respect to the cost components. The equipment is expected to provide benefits evenly over time. Also assume that the equipment has a salvage value of $32,000 and a physical life of 14 years. The salvage values of the input device, processor, and output device are $3,000, $10,000, and $19,000, respectively. The physical lives of the input device, processor, and output device are 6 years, 12 years, and 14 years, respectively. Calculate the amount of depreciation for 2023, 2024, and 2025 using the straight-line method. Sandhill prepares financial statements under ASPE. (Round answer to O decimal places, e.g. 5,275.) Depreciation 2023 2024 2025 +A $ $ +A $ LA Sandhill Company Ltd. buys equipment on January 1, 2023, for $323,000 cash. The asset is expected to have a useful life of 12 years and a residual value of $35,000. Sandhill prepares financial statements under IFRS. (a) Your answer is correct. Calculate the amount of depreciation for each of 2023, 2024, and 2025 using the straight-line method. Depreciation 2023 2024 2025 $ +A eTextbook and Media 24000 24000 24000 Attempts: 1 of 3 used double-declining-balance method. (Round Calculate the amount of depreciation for each of 2023, 2024, and 2025 using the percentage to 2 decimal places e.g. 52.75 and round final answers to the nearest dollar, e.g. 5,275.) 2023 +A $ Depreciation 53833.33 2024 2025 (c) +A +A 44861.11 $ 37384.26 eTextbook and Media Your answer is correct. Assistance Used Attempts: 1 of 3 used Assume that the equipment consists of an input device with a cost of $30,000, residual value of $5,000, and useful life of 5 years; a processor with a cost of $120,000, residual value of $12,000, and useful life of 10 years; and an output device with a cost of $173,000, residual value of $22,000, and useful life of 12 years. Prepare the journal entry to record the purchase on January 1, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment - Input Device Equipment - Processor Debit 30000 120000 Equipment - Output Device 173000 Cash Credit 323000 (d) Your answer is correct. Assume the information given in part (c) above. Also assume that the benefits of the input device and processor are expected to flow to Sandhill evenly over time, but that the output device is expected to provide the greatest benefits in the early years. Calculate the amount of depreciation for 2023 using the most appropriate methods. (Round percentage to 2 decimal places e.g. 52.75 and round final answers to the nearest dollar, e.g. 5,275.) Depreciation for 2023 +A $ 44633.33
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Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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