Question
In: Accounting
On July 1, 2020, Adams Company acquired a new machine for $ 200,000 and estimated that...
On July 1, 2020, Adams Company acquired a new machine for $
200,000 and estimated that it would have a useful life of 10 years
and residual value of $ 10,000. On January 2, 2022, Adams spent $
31,500 to perform a major overhaul on the equipment which improved
the efficiency of the machine by 20%. Due to this change, Adams
believed that the machine should have a total useful life of 12
years and residual value should be increased by $ 4,000. On
November 1, 2023, the machine was sold for $ 110,000. The company
uses straight line method of depreciation and closes its book on
December 31.
Required: 1. Calculate the carrying value of the equipment at
December 31, 2021.
2. Calculate depreciation expense for 2022.
3. Prepare the journal entry on November 1, 2023.
Solutions
ekkarill92 answered 3 months agoRelated Solutions
On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life...
On January 1, 20x1, Perdrillo Company acquired a new drilling
machine costing $10,000. Estimated useful life of five years or
36,000 drilling operations and estimated salvage value of
$1,000.
REQUIRED: Encircle
the one correct answer for each of the following:
Show all supporting
calculations or no credit.
Using straight-line depreciation, 20x1 depreciation expense
is:
a. $2,000 b. $7,200 c. $1,800 d. $900
e. None of these.
Using units-of-production depreciation and that 8,000 drilling
operations were made during 20x1, depreciation expense...
Problem #2 A machine, which cost $400,000, is acquired on October 1, 2020. Its estimated salvage...
Problem #2
A machine, which cost $400,000, is acquired on October 1, 2020.
Its estimated salvage value is $30,000 and its expected life is 8
years.
Instructions
Calculate depreciation expense for
2020 and 2021 by each of the following methods, showing the figures
used. SHOW ALL WORK!
(a) Double-declining balance
(b) Straight-Line
Geddie Products purchased a machine for $60,000 on July 1, 2020. The company estimates that the...
Geddie Products purchased a machine for $60,000 on July 1, 2020.
The company estimates that the useful life of the asset is 4 years,
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1) Calculate the Depreciable Base and the depreciation expense of
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2) Calculate the depreciation expense of 2020 using the
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3) Calculate the depreciation expense of 2021...
Duval Company acquired a machine on January 1, 2018, that costs $2,700 and has an estimated...
Duval Company acquired a machine on January 1, 2018, that costs
$2,700 and has an estimated residual value of $200. Required a)
Complete the following schedule for 2019 using: A) straight-line,
B) units-ofproduction, C) double declining-balance Method Estimated
Useful Life or Units Depreciation Expense for 2019 Accumulated
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(estimated total) 1,000 units (actual year 2018) 1,200 units
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Best Company acquired a machine on January 1, 2018, that cost $40,000 and had an estimated...
Best Company acquired a machine on January 1, 2018, that cost
$40,000 and had an estimated residual value of $4,000. Complete the
following schedule (for 2018) using the three methods of
depreciation:
straight-line, B.) units-of-production, C.) declining-balance
at 150% acceleration rate.
(Round to the nearest dollar).
Income
Statement
Balance Sheet
Method
Useful
Life
2018
Expense 2018
Accum. Deprec.
SL
5
yrs
$__________
$__________
Units Prod.
8,000 units
$__________
$__________
(2018 Actual 2,000 units)
200%
DB
5
yrs
$__________ ...
XYZ Company is considering the purchase of a new machine. The machine will cost $200,000 and...
XYZ Company is considering the purchase of a new machine. The machine
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and at the end of year six. In addition, purchasing this machine would
require an immediate investment of $35,000 in working capital which
would be released for investment elsewhere at the end of the 10 years.
The machine is expected to have a $15,000...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1,...
XYZ Company had 200,000 shares of common stock outstanding on
December 31, 2020. On July 1, 2021, XYZ issued an additional 40,000
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XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1,...
XYZ Company had 200,000 shares of common stock outstanding on
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shares for cash. On January 1, 2021, XYZ issued 17,000 shares of
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$100 per share and paid a 6% dividend. Each share of preferred
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On July 1, 2020, Yorkton Company purchased for $420,000 equipment having an estimated useful life of...
On July 1, 2020, Yorkton Company purchased for $420,000
equipment having an estimated useful life of five years with an
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Required:
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ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a...
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The
machine had a useful life of five years and was depreciated on a
straight-line basis with no disposal value. ABC Ltd adopts the cost
model for accounting for assets in this class. ABC Ltd makes the
following estimates of the value of the machine: Date Net selling
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30 June 2020 $460 000...
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