Why is land not depreciated? (2) Is land and land improvement the same asset? Explain (2) Write
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- Why is land not depreciated? (2)
- Is land and land improvement the same asset? Explain (2)
- Write the entry for charging yearly depreciation. (2)
- What are the three methods of charging depreciation? Write the formula for each. (2)
- Write a popular misconception about depreciation. (2)
- Price of the asset $700000, Sales Tax - $ 49000, Discount $21000, Freight to move machine to plant $ 3500, Assembly costs$ 3000, Cost of foundation for machine $ 2500, cost of spare parts used in maintaining machine $ 4200? Calculate the cost of the asset. (5)
- On January 2, 2016 Rogers Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. If Rogers Corporation uses the straight-line method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2017, during which period the asset was used 4,500 hours? (5)
- On January 2, 2016, Rogers Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2017, if Rogers Corporation uses the double-declining-balance method of depreciation?(5)
- Royal Stables purchased new equipment for their barn on July 1, 2016. The new equipment had a cost of $100,000, estimated salvage of $20,000 and an expected useful life of 10 years. Prepare the journal entry for the December 31, 2016 and 2017 amortization. Note: Royal Stables uses the straight-line method of depreciation.(5)
- Box Guys Corporation purchases one of their main competitors on March 31, 2017. Box Guys paid $160,000 for this purchase which included assets of $120,000 and liabilities of $10,000. The goodwill is believed to have an indefinite benefit.(5)
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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