Question
In: Accounting
Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000. Adelphi sold the machine on January 1, 2021 for $24,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number.
Solutions
Expert Solution
| Cost | $ 50,000.00 |
| Accumulated depreciation | $ 29,520.00 |
| Book value | $ 20,480.00 |
| Sales price | $ 24,000.00 |
| Book value | $ 20,480.00 |
| Gain /(loss) | $ 3,520.00 |
Gain on sale = $3,520
.
Working
| Double declining Method | ||
| A | Cost | $ 50,000.00 |
| B | Residual Value | $ 5,000.00 |
| C=A - B | Depreciable base | $ 45,000.00 |
| D | Life [in years] | 10 |
| E=C/D | Annual SLM depreciation | $ 4,500.00 |
| F=E/C | SLM Rate | 10.00% |
| G=F x 2 | DDB Rate | 20.00% |
| Year | Beginning Book Value | Depreciation rate | Depreciation expense | Ending Book Value | Accumulated Depreciation |
| 2017 | $ 50,000.00 | 20.00% | $ 10,000.00 | $ 40,000.00 | $ 10,000.00 |
| 2018 | $ 40,000.00 | 20.00% | $ 8,000.00 | $ 32,000.00 | $ 18,000.00 |
| 2019 | $ 32,000.00 | 20.00% | $ 6,400.00 | $ 25,600.00 | $ 24,400.00 |
| 2020 | $ 25,600.00 | 20.00% | $ 5,120.00 | $ 20,480.00 | $ 29,520.00 |
ekkarill92 answered 1 year agoRelated Solutions
Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for
$50,000. The machine was estimated to have a service life of ten
years with an estimated residual value of $5,000. Adelphi sold the
machine on January 1, 2021 for $27,000. Adelphi uses the double
declining method for depreciation. Using this information, how much
is the gain or (loss) for the equipment sale entry made on January
1, 2021. Enter a loss as a negative number.
Adelphi Company purchased a machine on January 1, 2017, for $90,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for
$90,000. The machine was estimated to have a service life of ten
years with an estimated residual value of $5,000. Adelphi sold the
machine on January 1, 2021 for $30,000. Adelphi uses the double
declining method for depreciation. Using this information, how much
is the gain or (loss) for the equipment sale entry made on January
1, 2021. Enter a loss as a negative number.
Adelphi Company purchased a machine on January 1, 2017, for $70,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for
$70,000. The machine was estimated to have a service life of ten
years with an estimated residual value of $5,000. Adelphi sold the
machine on January 1, 2021 for $28,000. Adelphi uses the double
declining method for depreciation. Using this information, how much
is the gain or (loss) for the equipment sale entry made on January
1, 2021. Enter a loss as a negative number.
Adelphi Company purchased a machine on January 1, 2017, for $100,000. The machine was estimated to have...
Adelphi Company purchased a machine on January 1, 2017,
for $100,000. The machine was estimated to have a
service life of ten years with an estimated residual value of
$5,000. Adelphi sold the machine on January 1, 2021 for
$23,000. Adelphi uses the double declining method for depreciation.
Using this information, how much is the gain or
(loss) for the equipment sale entry made on January 1, 2021. Enter
a loss as a negative number.
10. APEX Company purchased a machine on January 1, 2017, for $60,000. The machine was estimated...
10. APEX Company purchased a machine on January 1, 2017, for
$60,000. The machine was estimated to have a service life of ten
years with an estimated residual value of $6,000. APEX sold the
machine on January 1, 2021 for $12,000. APEX uses the double
declining method for depreciation. Using this information, how much
is the gain or (loss) for the equipment sale entry made on January
1, 2021. Enter a loss as a negative number.
On January 1, 2017, company purchased a molding machine at 67.000 TL. The estimated useful life...
On January 1, 2017, company purchased a molding machine at
67.000 TL. The estimated useful life of the machine is 4 years and
the estimated salvage value is 2.000 TL. At the beginning of the
3rd year a major renovation is maintained on the machine. The cost
of the renovation is 34.000 TL. Because of the renovation estimated
useful life extended to 6 years in total and the salvage
value increased to 2.500 TL. Assume the company uses
double declining
method prepare...
On January 1, 2017, Beard Company purchased a machine for $800,000. The machine is expected to...
On January 1, 2017, Beard Company purchased a machine for
$800,000. The machine is expected to have a 10-year life and no
residual value. On January 1, 2017, it leased the machine to Ajax
Company for a three-year period at an annual rental of $200,000 to
be paid at the end of each year. The lease has an implicit interest
rate of 8%. Ajax has adopted early the provisions of ASC 842 on
January 1, 2017.
What's the initial value...
1. Jalloh Company purchased machinery for $162,000 on January 1, 2017. It is estimated that the...
1. Jalloh Company purchased machinery for $162,000 on January 1,
2017. It is estimated that the machinery will have a useful life of
20 years, salvage value of $15,000, production of 84,000 units, and
working hours of 42,000. During 2017, the company uses the
machinery for 14,300 hours, and the machinery produces 20,000
units. Compute depreciation under the straight-line, unit of
output, working hours, sum of the year’s digits, and
double-declining balance methods.
On January 1, Tolson Company purchased a building by paying $50,000. The building has an estimated...
On January 1, Tolson Company purchased a building by paying
$50,000. The building has an estimated life of 40 years and an
estimated residual value of $10,000.
Prepare journal entries to record the purchase and the related
year-end adjusting entry.
ABC company purchased equipment on January 1, 2015, for $50,000, with an estimated useful life of...
ABC company purchased equipment on January 1, 2015, for $50,000,
with an estimated useful life of 5 years and an estimated residual
value of $5,000. Assume the equipment was sold on April 30th 2017
for $25,000
Prepare journal entries for the following:
A) Calculate depreciation expense for 2015 and 2016 using
straight line method of depreciation. Prepare the journal entry to
record depreciation
B) Calculate depreciation for 2017 and record the journal
entry
C) Prepare the journal entry for the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
- 0.560 g He, 20.482 g F2, and 13.960 g Ar are placed in a 18.4-L container...
- Let X ∼ Pois(4), Y ∼ Pois(12), U ∼ Pois(3) be independent random variables. a) What...
- which one is more nucleophilic: hydroxide ion (OH) , or ammonia (NH3)? Explain why
- A sample mixture of ethyl benzoate (bp 212 C) and dodecane (bp 216.2 C) is injected...
ADVERTISEMENT