Question
In: Accounting
On June 1, 2019, Turner Corporation purchased land, a building, and some equipment for $540,000. The...
On June 1, 2019, Turner Corporation purchased land, a building,
and some
equipment for $540,000. The following information is available
concerning
the property purchased:
Current Market Value
Land
.......................
142,500
Building
...................
262,200
Equipment
..................
165,300
Before the property could be used, Turner had to spend $26,000 to
renovate
the building and $14,000 to put the equipment in working
order.
Assume the equipment was assigned a $9,500 residual value, a
15-year life,
and was being depreciated using the
straight-line depreciation method.
Calculate the book value of the equipment at December 31,
2025.
Solutions
Expert Solution
| Calculation of the book value of the equipment at December 31, 2025 | |||||||||
| Year | Beginning book value | Addition | Depreciation | Ending Book Value | |||||
| 2019 | $0 | $179,300 | $6,603 | $172,697 | |||||
| 2020 | $172,697 | $0 | $11,320 | $161,377 | |||||
| 2021 | $161,377 | $0 | $11,320 | $150,057 | |||||
| 2022 | $150,057 | $0 | $11,320 | $138,737 | |||||
| 2023 | $138,737 | $0 | $11,320 | $127,417 | |||||
| 2024 | $127,417 | $0 | $11,320 | $116,097 | |||||
| 2025 | $116,097 | $0 | $11,320 | $104,777 | |||||
| The book value of the equipment at December 31, 2025 | $104,777 | ||||||||
| Working | |||||||||
| Depreciation on equipment per year using straight line method = (Depreciable value - residual value)/useful life | |||||||||
| Depreciable value of equipment = Market value of equipment + cost to put it in working order = $165300 + $14000 = $179300 | |||||||||
| Depreciation on equipment per year using straight line method = ($179300 - $9500)/15 years = $11,320 | |||||||||
| Note : Depreciation for the year 2019 considered for 7 months. | |||||||||
ekkarill92 answered 2 years agoRelated Solutions
On June 1, 2019, Turner Corporation purchased land, a building, and some equipment for $540,000. The...
On June 1, 2019, Turner Corporation purchased land, a building,
and some
equipment for $540,000. The following information is available
concerning
the property purchased:
Current Market Value
Land
.......................
142,500
Building
...................
262,200
Equipment
..................
165,300
Before the property could be used, Turner had to spend $26,000 to
renovate
the building and $14,000 to put the equipment in working
order.
Assume the equipment was assigned a $9,500 residual value, a
15-year life,
and was being depreciated using the
straight-line...
On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment....
On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building,
and some equipment. The market value of these assets on that date were:
land $68,000; building $220,000; equipment $112,000. The equipment was
assigned a useful life of 15 years and a $6,000 residual value. The
equipment will be depreciated using the straight-line method.
On November 30, 2023, XYZ Company sold the equipment for $39,300 cash.
Calculate the amount of the loss recorded on the sale of the...
On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment....
On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building,
and some equipment. The market value of these assets on that date were:
land $68,000; building $220,000; equipment $112,000. The equipment was
assigned a useful life of 15 years and a $6,000 residual value. The
equipment will be depreciated using the straight-line method.
On November 30, 2023, XYZ Company sold the equipment for $39,300 cash.
Calculate the amount of the loss recorded on the sale of the...
On January 1, 2019, Pronghorn Corporation purchased a building to use as its factory, and some...
On January 1, 2019, Pronghorn Corporation purchased a building
to use as its factory, and some equipment to manufacture its
product. The following information was determined at the time of
purchase:
Cost
Useful Life
Residual Value
Depreciation
Building
$2,550,000
20 years
$510,000
Double Declining
Equipment
$1,060,000
25 years
$106,000
Straight-Line
On January 1, 2022, Pronghorn decided to change the depreciation
method for the building to the straight-line method, as a result of
a change in the pattern of benefits received....
Wildhorse Company purchased land and a building on April 1, 2019, for $369,600. The company paid...
Wildhorse Company purchased land and a building on April 1,
2019, for $369,600. The company paid $110,400 in cash and signed a
5% note payable for the balance. At that time, it was estimated
that the land was worth $145,000 and the building, $224,600. The
building was estimated to have a 25-year useful life with a $35,000
residual value. The company has a December 31 year end, prepares
adjusting entries annually, and uses the straight-line method for
buildings; depreciation is...
6. On January 1, 2019, Ginger Company purchased land and a building for a total cash...
6. On January 1, 2019, Ginger Company purchased land and a
building for a total cash price of $6,900,000. Individually, the
land was appraised at $2,250,000 and the building at $5,250,000.
The buildings estimated useful life is 25 years and its estimated
salvage value is $300,000. Required: a. Prepare the journal entry
to record the purchase of land and building on January 1, 2019. b.
What is the 2019 depreciation expense on the building, assuming
that double declining-balance depreciation is...
1. Victoria Corporation entered into the following transactions: Purchased a tract of land with existing building...
1. Victoria Corporation entered into the following transactions:
Purchased a tract of land with existing building in exchange for
100,000 shares of Victoria with P40 par value that had a market
price of P65 per share on the date of acquisition. The last
property tax bill indicates assessed value of P3,890,000 for the
land and P450,000 for the building. Razed the building at a cost of
P275,000 to make way for a new building to be constructed later
that year....
in its first year of business, atc company purchased land, a building, and a equipment on...
in its first year of business, atc company purchased land, a
building, and a equipment on november 20 2016 for november 700000
in total. The land was valued 338000 and building at 262000 and the
equipment at 150000. Additional information on the depreicable
asset follows:
Assest Residual Value Useful life in years Depriciation
Method
Building 15,000 60months residual value Straight line
Equipment 15,000 8months residual value Double diminishing
balance
Instructions:
a. Allocate the purchase cost of the land, building and...
A sole proprietorship purchased an office building in June of 2019 that cost $800,000. Assume the...
A sole proprietorship purchased an office building in June of
2019 that cost $800,000. Assume the taxpayer wants to maximize
current year depreciation and thus wants to utilize 100% bonus
depreciation where applicable. What is the total amount of
depreciation the taxpayer can take for the building in 2019?
Hoover Corporation purchased equipment on January 1, 2019, for $610,000. In 2019 and 2020, Hoover depreciated...
Hoover Corporation purchased equipment on January 1, 2019, for
$610,000. In 2019 and 2020, Hoover depreciated the asset on a
straight-line basis with an estimated useful life of 8 years and a
$10,000 residual valie. In 2021, due to changes in technology,
Hoover revised the useful life to a total of four years with no
residual value. What depreciation would Hoover record for the year
2021 on this equipment?
a) $98,641
b) 230,000
c)100,000
d)72,000
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1.) Think back to August 6, 1945. The United States has just dropped an atomic weapon...
- Carry out the equipment and operating procedures between injection molding of thermoplastics and injection molding of...
- The cumulative timing approach was used to time a job and its elements. Use the following...
- absorption refection scattering refraction and diffraction can all have an impact on RF signal strength. Identify...
- This is my code I need to complete it? //The code package arraylists; import java.util.ArrayList; import...
- Organization management function at Tesla, and how can they improve the structure
- A company orders every 8 weeks. 52 weeks/8 weeks per order = 6.5 orders per year....
ADVERTISEMENT