Question
In: Accounting
1) On Jan. 1, 2014, Westerfeld Company placed into service a machine that had an acquisition...
1) On Jan. 1, 2014, Westerfeld Company placed into service a machine that had an acquisition cost of $70,000, a salvage value of $8,000, and an estimated useful life of 5 years. On Jan. 1, 2017, Westerfeld revised the estimated useful life of the machine to 7 years. How much annual depreciation expense should Westerfield recognize for 2017, using straight-line depreciation?
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2) A PP&E asset with a cost of $300,000 and accumulated depreciation of $285,000 is sold for $35,000. What is the gain or loss on disposal that the company should record? |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
on Jan 1 of the current year a company purchased and placed in serice a machine...
on Jan 1 of the current year a company purchased and placed in
serice a machine with a cost of $240,000. The company estimated the
machines useful life to be 4 years or 60,000 units of output with
an estimated salvage valus of $60,000. During the current year
12,000 united were produced
prepare the necessary Dec 31 adjusting journal entry to record
depreciation for the current year assuming the company uses
1) units of production methid deoreciation
2) double declinin...
On April 1 of the current year, a company purchased and placed in service a machine...
On April 1 of the current year, a company purchased and placed
in service a machine with a cost of $240,000. The company estimated
the machine's useful life to be four years or 60,000 units of
output with an estimated salvage value of $60,000. During the
current year, 12,000 units were produced. Prepare the necessary
December 31 adjusting journal entry to record depreciation for the
current year assuming the company uses:
1.The straight-line method of depreciation
2.The units-of-production method of...
Acquisition Cost and Depreciation Reveille, Inc., purchased Machine #204 on April 1, 2016, and placed the...
Acquisition Cost and Depreciation
Reveille, Inc., purchased Machine #204 on April 1, 2016, and
placed the machine into production on April 3, 2016. The following
information is relevant to Machine #204:
Price
$60,000
Freight-in costs
2,500
Preparation and installation costs
3,900
Labor costs during regular production operation
10,200
Credit terms
2/10, n/30
Total productive output
138,500 units
The company expects that the machine could be used for 10 years,
after which the salvage value would be zero. However, Reveille
intends...
Acquisition Cost and Depreciation Reveille, Inc., purchased Machine #204 on April 1, 2016, and placed the...
Acquisition Cost and Depreciation Reveille, Inc., purchased
Machine #204 on April 1, 2016, and placed the machine into
production on April 3, 2016. The following information is relevant
to Machine #204: Price $60,000 Freight-in costs 2,500 Preparation
and installation costs 3,900 Labor costs during regular production
operation 10,200 Credit terms 2/10, n/30 Total productive output
138,500 units The company expects that the machine could be used
for 10 years, after which the salvage value would be zero. However,
Reveille intends...
On Jan 1, 2021, KFC, Inc. Purchased machine for $200,000. If had a estimated value of...
On Jan 1, 2021, KFC, Inc. Purchased machine for $200,000. If had
a estimated value of $40,000 and a 4 year useful life. KFC has Dec
31, year and uses the double declining balance method of
depreciation. what is the the accumulated depreciation on Dec 31,
2022?
Dunlop Company purchased a machine on January 1, 2014, for $44,000,000. At the time the machine...
Dunlop Company purchased a machine on January 1, 2014, for
$44,000,000. At the time the machine had an estimated useful life
of 10 years and no residual value. On December 31, 2017, the
accountant found that the entry for depreciation expense was
omitted in 2015. The Board of Directors informed the accountant
that the company plans to switch to straight line depreciation
starting with the year 2017. The company presently uses the sum of
the years’digits method. Prepare the general...
2. On January 1, 2015, SAS Corp. purchased and placed in service a machine. The following...
2. On January 1, 2015, SAS Corp. purchased and placed in service
a machine. The following information is available regarding the
machine, show all calculations: (20 points)
Acquisition cost
...................................................... $130,000
Estimated salvage value
.......................................... $15,000
Estimated useful life
............................................... 5 years
a. Using straight line depreciation, make the necessary
adjusting journal entry at December 31, 2015.
b. What would be the balance of the accumulated depreciation
account after the 4th year adjusting entry?
c. How would the machine and...
On January 1, 2014, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition...
On January 1, 2014, Allan Company bought a 15 percent interest
in Sysinger Company. The acquisition price of $184,500 reflected an
assessment that all of Sysinger’s accounts were fairly valued
within the company’s accounting records. During 2014, Sysinger
reported net income of $100,000 and declared cash dividends of
$30,000. Allan possessed the ability to influence significantly
Sysinger’s operations and, therefore, accounted for this investment
using the equity method. On January 1, 2015, Allan acquired an
additional 80 percent interest in...
Jan 1 Retired a piece of machinery that was purchased on Jan 1 2010. The machine...
Jan
1 Retired a piece of machinery that was purchased on Jan 1 2010.
The machine cost $62400 on that date.It had a useful life of 10
years with no salvage.
June 30 Sold a computer that was purchased on January 1,2017.
The computer cost $35,500. It had a useful life of 5 years with no
salvage value. The computer was sold for $14,100.
Dec 31 Discarded a delivery truck that was purchased on Jan 1
2016. The truck cost...
Magnum Construction Company, Inc. bought equipment for $2,250,000 on Jan. 1, 2014. The company considered various...
Magnum Construction Company, Inc. bought
equipment for $2,250,000 on Jan. 1, 2014.
The company considered various depreciation methods for
financial reporting purposes
(pro-rated by month). The company estimates the equipment will
have a useful life of
10-years with a residual value of
$140,000. For tax purposes the asset falls into
the
seven-year category.
Hours
Estimated total hours of usage
50,000
Actual usage
2014
5,500
2015
6,000
2016
4,500
Instructions
Calculate the following:
a
Assuming the...
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