Question
In: Accounting
On January 1, 2018, A Co. purchased a machine at a cost of $84,000. The machine...
On January 1, 2018, A Co. purchased a machine at a cost of $84,000. The machine is expected to last 5 years and has a residual value of $14,000.
Required:
1. Compute depreciation for the five year periods ending December 31 using the straight-line, sum-of-the-years digits and DDB method.
2. The machine is sold on January 1,2020 for $40,000. Compute the gain or loss for each method.
Solutions
ekkarill92 answered 1 month agoRelated Solutions
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $30,500. Its estimated residual value was
$9,500 at the end of an estimated 5-year life. The company expects
to produce a total of 10,000 units. The company produced 1,150
units in 2018 and 1,600 units in 2019.
Required:
a. Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
b. Calculate the depreciation expense for 2018 and 2019 using
the units-of-production method.
c....
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $32,000. Its estimated residual value was
$10,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 1,200
units in 2018 and 1,650 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $38,000. Its estimated residual value was
$12,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 1,400
units in 2018 and 1,850 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $36,500. Its estimated residual value was
$11,500 at the end of an estimated 5-year life. The company expects
to produce a total of 10,000 units. The company produced 1,350
units in 2018 and 1,800 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
Emmar Co. purchased a machine on January 1, 2013 at a cost of 240000. The machine...
Emmar Co. purchased a machine on January 1, 2013 at a cost of
240000. The machine had been estimated eight year life with no
residual value. Emmar uses straight line depreciation. At december
31, 2016. Emmar estimated that the machine would have only two more
years of remaining life with no residual value. For 2016, Emmar
would report delectation expense of
The Jefferson Co. purchased a machine on January 1, 201 The machine cost $595,000. It had...
The Jefferson Co. purchased a machine on January 1, 201 The
machine cost $595,000. It had an estimated life of ten years, or
30,000 units, and an estimated residual value of $40,000. In 2016,
Jeffries produced 3,000 units.
Required:
Compute the depreciation charge for 2016 using each of the
following methods:
a.
Double-declining-balance method
b.
Activity method (units of output)
c.
Sum-of-the-years'-digits method
d.
Straight-line method
I think I did this right, but want to make sure
1) ABC Co. purchased machinery that cost $200,000 on January 1, 2018. The entire cost was...
1) ABC Co. purchased machinery that cost $200,000 on
January 1, 2018. The entire cost was recorded as an expense. The
machinery has a nine-year life and a $10,000 residual value. The
error was discovered on December 20, 2021. Ignore income tax
considerations.
ABC’s income statement for the year ended December 31,
2021, should show depreciation expense
of
_______
3) Equipment was purchased at the beginning of 2018 for
$900,000. At the time of its purchase, the equipment was estimated...
On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is...
On January 1, 2020, a machine was purchased for $900,000 by
Young Co. The machine is expected to have an 8-year life with no
salvage value. It is to be depreciated on a straight-line basis.
The machine was leased to St. Leger Inc. for 3 years on January 1,
2020, with annual rent payments of $150,955 due at the beginning of
each year, starting January 1, 2020. The machine is expected to
have a residual value at the end of...
On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $117,500. The
machine has an estimated salvage value of $10,400 and an estimated
useful life of 5 years. The machine can operate for 119,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 23,800 hrs;
2019, 29,750 hrs; 2020, 17,850 hrs; 2021, 35,700 hrs; and 2022,
11,900 hrs.
(a)
Compute the annual depreciation charges over the machine’s life...
On January 1, 2018, a machine was purchased for $122,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $122,500. The
machine has an estimated salvage value of $7,300 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
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