Irwin, Inc. constructed a machine at a total cost of $25 million. Construction was completed at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Irwin, Inc. constructed a machine at a total cost of $25 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $3 million. At the beginning of 2021, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record the entry relating to the machine for 2021. Note: Enter debits before credits. Event General Journal Debit Credit Irwin, Inc. constructed a machine at a total cost of $25 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $3 million. At the beginning of 2021, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record the entry relating to the machine for 2021. Note: Enter debits before credits. Event General Journal Debit Credit
Expert Answer:
Answer rating: 100% (QA)
ANSWER Calculation of depreciation using sum of year digits method Total cost of cons... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
Red Corp. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2007 and the machine was placed in service at the beginning of 2008. The machine was being...
-
Irwin, Inc. constructed a machine at a total cost of $35 million. Construction was completed at the end of 2007 and the machine was placed in service at the beginning of 2008. The machine was being...
-
Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being...
-
Describe the flow of costs through the T-accounts in a job order cost system.
-
Design an enantiomeric resolution of racemic 2-phenylpropanoic acid using a pure enan-tiomer of 1-phenylethanamine as resolving agent. (assume that a solvent can be found in which the diasteromeric...
-
Why are viruses so much smaller than the cells they infect?
-
In Exercises 1 to 4, it may be helpful to draw a figure such as Figure 5.5. Figure 5.5. Using the normal curve table, determine the area of the standard normal distribution that is between the mean...
-
Presented below are the components in Miller Company?s income statement. Determine the missing amounts. Cost of Goods Sold Sales Revenue Gross Operating Expenses Net Income Profit (a) $75,000 (b)...
-
In this week's reading in The Goal, we learn that the accounting definition of inventory appears to penalize what would otherwise be good operations management. Is this a common occurrence in your...
-
1. Explain the legal basis for a cause of action against an auditor. What are the defenses available to the auditor to rebut such charges? How does adherence to the ethical standards of the...
-
Suppose a zero dividend payment stock is selling for K48 per share.The standard deviation of the return on this stock is 25%.The risk free rate s 8%.The option has a strike price of K50.For a 6 month...
-
The required input values for use in forecasting values is provided at the top of the Excel file. Be sure to reference cells and show all calculations and not simply type values into the yellow...
-
Problem 5: IBM is considering 2 alternative production methods for a new hand-held computer. Costs (in millions) and lives associated with the equipment necessary for each method are: Year 0 1 2 3 4...
-
Assist with questions 1-10; 14-15. Questions and Problems 1. Call Option Payoffs (LO2, CFA2) Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and the...
-
Question 3 Percy began trading on 1 July 2021 selling comics from his newly purchased retail unit building as well as delivering them locally. His first tax adjusted accounting profit before capital...
-
Suppose a company charges $ 1 8 9 . 0 0 for a bicycle it sells to wholesalers. The fixed cost of the opperation is $ 2 , 0 0 0 , 0 0 0 and the variable cost is $ 1 0 0 . 0 0 per bicycle. They have...
-
1. The Area of a rectangle is represented by x4-y4 8xy x-y 2xy and its Jength is represented by a. What is the width of the rectangle? b. If you double the length of the rectangle but keep the same...
-
Find a polar equation for the curve represented by the given Cartesian equation. 4y 2 = x
-
Refer to the situation described inBE 11-2. Assume the machine was purchased on March 31, 2011, instead of January 1. Calculate depreciation expense for 2011 and 2012 using each of the following...
-
Parker Inc. has the following cash balances: First Bank ....... $ 150,000 Second Bank ...... (10,000) Third Bank ....... 25,000 Fourth Bank ........ (5,000) Required: 1. Prepare the current assets...
-
Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.
-
W hat is diauxic growth? Explain the roles of cAMP and CAP in this process.
-
What is antisense RNA? How does it affect the translation of a complementary mRNA?
-
What are the functions of activator proteins and repressor proteins in transcription? Explain how these proteins work at the molecular level.
Study smarter with the SolutionInn App