Question

In: Accounting

Tracker Inc. purchased equipment at a cost of $566869. The equipment’s estimated useful life is 10...

Tracker Inc. purchased equipment at a cost of $566869. The equipment’s estimated useful life is 10 years. The estimated residual value of the asset is $56659.

Using the double declining balance method, the depreciation expense in year 2 will be?

Solutions

Expert Solution


Related Solutions

BCK company purchased new equipment with an estimated useful life of four years. The cost of...
BCK company purchased new equipment with an estimated useful life of four years. The cost of the equipment was $50,000, and the salvage value was estimated to be $5,000 at the end of four years. The company uses the double-declining-balance method for book depreciation. (i) What is the amount of depreciation for the fourth year of use? (ii) What is the book value of the asset at the end of the third year?
On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10...
On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000. a. Is the equipment impaired at July 1,...
Infosys Corp, purchased an equipment for $410,000 which was estimated to have a useful life for...
Infosys Corp, purchased an equipment for $410,000 which was estimated to have a useful life for 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on straight-line basis. In 2014 (year 8), it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time. The journal entry to correct the prior year’s depreciation is: Select one:...
A company purchased equipment for $400,000 which was estimated to have a useful life of 14...
A company purchased equipment for $400,000 which was estimated to have a useful life of 14 years with a salvage or residual value of $22,000 at the end of that time. Depreciation has been recorded for 2 years on a straight-line basis. In 2020 (year 3), it is determined that the total estimated life should be 17 years with a residual or salvage value of $16,000 at the end of that time. What is the net book value a the...
a) A Company purchased equipment for RO 50,000 with an estimated useful life of 20 years....
a) A Company purchased equipment for RO 50,000 with an estimated useful life of 20 years. At the end of the 10 year, company determined that the equipment would last only 5 more years. Does this revision affect depreciation calculated previously? Yes or no, justify your answer. b) You are required to calculate the rate of depreciation and the depreciation to be charged at the end of each year by using reducing balance method for 4 years. Life of the...
Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life...
Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life will be 5 years. After 5 years the residual value is $500. Calculate depreciation expense and complete a depreciation schedule
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...
Roscoe Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15...
Roscoe Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2018, it is determined that the total estimated life should be 10 years with no salvage value at the end of that time. Instructions (a) Prepare the entry (if any) to correct the prior years’ depreciation. (b) Prepare the...
1) The Enterprise purchased an equipment on January 1st, 2011 that had an estimated useful life...
1) The Enterprise purchased an equipment on January 1st, 2011 that had an estimated useful life of 10 years.The equipment cost $50,000 and estimated residual value was $5,000 at the time of purchase. After three full years of use, the equipment was sold for cash and recognized a $3,000 gain on the sale of that equipment. How much cash did the enterprise receive for the equipment? 2) Aqua Company started the year with the following: Assets $100,000; Liabilities $60,000; Common...
On July 1, 2016, Johnny Company purchased equipment for $550,000. The estimated useful life of the...
On July 1, 2016, Johnny Company purchased equipment for $550,000. The estimated useful life of the equipment is 10-years. It is predicted that the equipment can be sold at the end of the 10-year period for $90,000. Johnny uses the double-declining balance depreciation method. Johnny recorded depreciation normally during 2016, 2017, and 2018. However, because Johnny determined that the equipment was no longer useful to the company, Johnny sold the equipment on June 30, 2019 for $400,000. 1. Based on...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT