On March 3 1 , 2 0 2 4 , the Herzog Company purchased a factory complete
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Question:
On March the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $ to the various types of assets along with estimated useful lives and residual values are as follows:
Asset Cost Estimated Residual Value Estimated Useful Life in years
Land $ NA NA
Building none
Equipment of cost
Vehicles $
Total $
On June equipment included in the March purchase that cost $ was sold for $ Herzog uses the straightline depreciation method for building and equipment and the doubledecliningbalance method for vehicles. Partialyear depreciation is calculated based on the number of months an asset is in service.
Required:
Compute depreciation expense on the building, equipment, and vehicles for
Prepare the journal entries to record the depreciation on the equipment sold on June and the sale of equipment.
Compute depreciation expense on the building, remaining equipment, and vehicles for
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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