Question

In: Accounting

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows: Equipment Cost...

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Units produced 38,000 shoes

first year units produced are : 7000 CAD

first year units produced are : 5000 CAD

first year units produced are : 7000 CAD

first year units produced are : 6600 CAD

first year units produced are : 3000 CAD

1- Calculate the first year depreciation using the three methods usable

2- Calculate the accumulated depreciation using the three methods for the 3rd and 4th year.

Solutions

Expert Solution


Related Solutions

Trainex Corporation purchased equipment on January 1, 2020 at a cost of $500,000. The equipment has...
Trainex Corporation purchased equipment on January 1, 2020 at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years. At the end of two years, Trainex reevaluated the useful life of the equipment. Management extended the total useful life an additional 5 years but estimated that the equipment would have no residual value at the end of this time. If the company uses straight-line depreciation, what amount (in whole dollars)...
Trainor Corporation purchased equipment on January 1, 2020, at a cost of $500,000. The equipment has...
Trainor Corporation purchased equipment on January 1, 2020, at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years. At the end of two years, Trainor revaluated the useful life of the equipment. Management extended the total useful life an additional 5 years but estimated that the equipment would have no residual value at the end of this time. If the company uses straight-line depreciation, what amount would be recorded...
Ivan Manufacturing purchased equipment and a delivery van on January 1, 2020. The equipment cost $95,000...
Ivan Manufacturing purchased equipment and a delivery van on January 1, 2020. The equipment cost $95,000 and has an estimated useful life of 8 years with a residual value of $10,000. The delivery van cost $125,000 and has an estimated life of 5 years or 200,000 kilometres and a residual value of $20,000. The delivery truck is expected to be driven 25,000 and 50,000 kilometres in 2019 and 2020, respectively. Required Ivan has decided to depreciate the equipment using either...
Barton Enterprises purchased equipment on January 1, 2020, at a cost of €350,000. Barton uses the...
Barton Enterprises purchased equipment on January 1, 2020, at a cost of €350,000. Barton uses the straight‐line depreciation method, a 5‐year estimated useful life, and no residual value. At the end of 2020, independent appraisers determined that the assets have a fair value of €320,000. Instructions a. Prepare the journal entry to record 2020 depreciation using the straight‐line method. b. Prepare the journal entry to record the revaluation of the equipment. c. Prepare the journal entry to record 2021 depreciation,...
On January 1, a company purchased equipment that cost $10,000.
Knowledge Check 01 On January 1, a company purchased equipment that cost $10,000. The company has not yet recorded depreciation, which is estimated 1800 per year. The company w prepare financial statements at the end of January. Complete the necessary journal entry. If no entry is required for a transaction event, select "No journal entry required in the first account field.)
The Orange Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is...
The Orange Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is $70,000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31. Round all answers to the nearest dollar. 1) What is depreciation expense for the year ended December 31, 2020? $ Answer 2) What is the depreciation rate (%)? Answer %...
On January 1, 2020, Betty DeRose, Inc. purchased equipment for $95,000. The equipment was assigned an...
On January 1, 2020, Betty DeRose, Inc. purchased equipment for $95,000. The equipment was assigned an estimated useful life of 15 years and a salvage value of $15,200. On January 1, 2024, Betty DeRose decided the life of the equipment should be changed from 15 to 25 years with a salvage value of $8,200 at the end of the 25 years. Betty DeRose uses the straight-line depreciation method to calculate depreciation on its assets. Calculate the book value of the...
The Brown Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $70,000,...
The Brown Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $70,000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31. Round all answers to the nearest dollar. 1) What is depreciation expense for the year ended December 31, 2020? $ Answer 2) What is the depreciation rate (%)?  Answer % 3) What...
The Orange Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $70,000,...
The Orange Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $70,000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31. Round all answers to the nearest dollar. 1) What is depreciation expense for the year ended December 31, 2020? 2) What is the depreciation rate (%)?   3) What is accumulated depreciation...
The Red Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $66,000,...
The Red Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $66,000, the residual value is $6,000, a useful life of 5 years and the use of the straight line method. The company's year end is December 31. 1) What is depreciation expense at December 31, 2020? $ Answer 2) What is accumulated depreciation at December 31, 2022? $ Answer 3) What is the carrying value of the asset at December 31, 2023? $ Answer 4)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT