Question
In: Accounting
Sage Creek Inc. began operations on 1/1/20. The company purchased $10,000 worth of computer equipment on...
Sage Creek Inc. began operations on 1/1/20. The
company purchased $10,000 worth of computer equipment on August 1,
and $50,000 worth of restaurant equipment on November 1. All of the
equipment is 5 year property. Assuming that the company elects out
of bonus depreciation and elects a Section 179 deduction of $10,000
on the restaurant equipment purchased in November.
(a) compute the total depreciation expense including
Section 179 for Gallagher for 2020.
(b) compute the 2022 depreciation expense on the
computer equipment if the equipment was sold on January
10th, 2022.
(c) Assume that in addition to the assets listed
above, Gallagher also purchased a Ford F350 diesel pickup for
$70,000 in May 2020. Assuming no bonus depreciation or Section 179
deduction on this asset, what is the amount of depreciation expense
for this pickup in 2019?
please it's urgent, provide correct answer only!! thanku
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, a company purchased equipment that cost $10,000.
Knowledge Check 01 On January 1, a company purchased equipment that cost $10,000. The company has not yet recorded depreciation, which is estimated 1800 per year. The company w prepare financial statements at the end of January. Complete the necessary journal entry. If no entry is required for a transaction event, select "No journal entry required in the first account field.)
McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells...
McGuire Corporation began operations in 2018. The company
purchases computer equipment from manufacturers and then sells to
retail stores. During 2018, the bookkeeper used a check register to
record all cash receipts and cash disbursements. No other journals
were used. The following is a recap of the cash receipts and
disbursements made during the year.
Cash receipts:
Sale of common stock
$
67,500
Collections from customers
320,000
Borrowed from local bank on April 1, note signed requiring
principal and interest...
McGuire Corporation began operations in 2021. The company purchases computer equipment from manufacturers and then sells...
McGuire Corporation began operations in 2021. The company
purchases computer equipment from manufacturers and then sells to
retail stores. During 2021, the bookkeeper used a check register to
record all cash receipts and cash disbursements. No other journals
were used. The following is a recap of the cash receipts and
disbursements made during the year. Cash receipts: Issue of common
stock $ 70,000 Collections from customers 325,000 Borrowed from
local bank on April 1, note signed requiring principal and interest...
McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells...
McGuire Corporation began operations in 2018. The company
purchases computer equipment from manufacturers and then sells to
retail stores. During 2018, the bookkeeper used a check register to
record all cash receipts and cash disbursements. No other journals
were used. The following is a recap of the cash receipts and
disbursements made during the year.
Cash receipts:
Sale of common stock
$
70,000
Collections from customers
325,000
Borrowed from local bank on April 1, note signed requiring
principal and interest...
McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells...
McGuire Corporation began operations in 2018. The company
purchases computer equipment from manufacturers and then sells to
retail stores. During 2018, the bookkeeper used a check register to
record all cash receipts and cash disbursements. No other journals
were used. The following is a recap of the cash receipts and
disbursements made during the year. Cash receipts: Sale of common
stock $ 55,000 Collections from customers 295,000 Borrowed from
local bank on April 1, note signed requiring principal and interest...
Cleveland Enterprises, Inc. began business on January 1, 2019. The company purchased $150,000 worth of 5-year...
Cleveland Enterprises, Inc. began business on January 1, 2019.
The company purchased $150,000 worth of 5-year equipment on March
1. The company uses MACRS depreciation for tax purposes and
straight line depreciation for financial statement purposes. The
company’s net income for financial statement purposes is $300,000.
Tax depreciation on the equipment is $30,000 and book depreciation
is $25,000. The company earned $2,000 in interest from a tax free
municipal bond. Prepare the journal entry for financial statement
purposes for the...
Sage Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of...
Sage Company began operations on January 1, 2019, adopting the
conventional retail inventory system. None of the company’s
merchandise was marked down in 2019 and, because there was no
beginning inventory, its ending inventory for 2019 of $38,000 would
have been the same under either the conventional retail system or
the LIFO retail system.
On December 31, 2020, the store management considers adopting the
LIFO retail system and desires to know how the December 31, 2020,
inventory would appear under...
Chapter 2, # 8 McGuire Corporation began operations in 2021. The company purchases computer equipment from...
Chapter 2, # 8
McGuire Corporation began operations in 2021. The company
purchases computer equipment from manufacturers and then sells to
retail stores. During 2021, the bookkeeper used a check register to
record all cash receipts and cash disbursements. No other journals
were used. The following is a recap of the cash receipts and
disbursements made during the year.
Cash receipts:
Issue of common stock
$
52,500
Collections from customers
290,000
Borrowed from local bank on April 1, note signed...
20. Lussier Company purchased a new computer for $175,000. It is estimated that the computer will...
20. Lussier Company purchased a
new computer for $175,000. It is estimated that the computer will
have a $15,000 residual value at the end of its 5-year useful
service life. The double diminishing-balance method of depreciation
will be used.
Instructions
Prepare a depreciation schedule which
shows the annual depreciation expense on the computer for its
5-year life.
April 1 Nozomi invested $37,000 cash and computer equipment worth $25,000 in the company in exchange...
April
1
Nozomi invested
$37,000 cash and computer equipment worth $25,000 in the company in
exchange for common stock.
2
The company rented
furnished office space by paying $2,000 cash for the first month’s
(April) rent.
3
The company
purchased $1,300 of office supplies for cash.
10
The company paid
$2,500 cash for the premium on a 12-month insurance policy.
Coverage begins on April 11.
14
The company paid
$1,800 cash for two weeks' salaries earned by employees.
24
The...
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