Question: Please answer. BE9-4 Record basket purchase. (LO 1) AP Rainbow Company purchased land, a building, and equipment on January 2, 2017, for $850,000. The company

Please answer.

Please answer. BE9-4 Record basket purchase. (LOPlease answer. BE9-4 Record basket purchase. (LOPlease answer. BE9-4 Record basket purchase. (LO
BE9-4 Record basket purchase. (LO 1) AP Rainbow Company purchased land, a building, and equipment on January 2, 2017, for $850,000. The company paid $170,000 cash and signed a mortgage note payable for the remainder. Management's best estimate of the value of the land was $352,000; of the building, $396,000; and of the equipment, $132,000. Record the purchase. BE9-3 Identify operating and capital expenditures. (L01)K In the space provided, indicate whether each of the following items is an operating expenditure (0) or a capital expenditure (C): (a) Repaired building roof, $1,500 (b) Replaced building roof, $27,500 (0) Purchased building, $480,000 (d) Paid insurance on equipment in transit, $550 (6) Purchased supplies, $350 (1) Purchased truck, $55,000 (g) Purchased oil and gas for truck, $125 (h) Rebuilt engine on truck, $5,000 (i) Added new wing to building, $250,000 (j) Painted interior of building, $1,500 BE9-5 Calculate straight-line depreciation. (LO 2) AP Surkis Company acquires equipment at a cost of $42,000 on January 3, 2017. Management estimates the equipment will have a residual value of $6,000 at the end of its four-year useful life. Assume the company uses the straight-line method of depreciation. Calculate the depreciation expense for each year of the equipment's life. Surkis has a December 31 fiscal year end. BE9-6 Calculate diminishing-balance depreciation. (LO 2) AP Refer to the data given for Surkis Company in BE9-5. Assume instead that the company uses the diminishing-balance method and that the diminishing-balance depreciation rate is double the straight-line rate. Calculate the depreciation expense for each year of the equipment's life

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