Question
In: Accounting
Computer equipment was acquired at the beginning of the year at a cost of $72,700. It...
Computer equipment was acquired at the beginning of the year at a
cost of $72,700. It had an estimated residual value of $3,500 and
an estimated useful life of 5 years.
A. Determine the depreciable cost
B. Determine the straight-line rate
C. Determine the annual straight-line depreciation
Solutions
Expert Solution
| a. | The depreciable cost | = | $ 69,200 | |
| b. | The Straight line rate | = | 20% | |
| c. | Annual Depreciation | = | $ 13,840 | |
| Workings: | ||||
| The depreciable cost | = | (Cost - Residual value) | ||
| = | ($72700 - $3500) | |||
| = | $ 69,200 | |||
| The Straight line rate | = | 1 / useful life | ||
| = | 1/5 | |||
| = | 20% | |||
| Depreciation for the year | = | $69200 X 20% | ||
| = | $ 13,840 |
ekkarill92 answered 2 years agoRelated Solutions
Computer equipment was acquired at the beginning of the year at a cost of $27,500 that...
Computer equipment was acquired at the beginning of the year at
a cost of $27,500 that has an estimated residual value of $1,700
and an estimated useful life of 5 years.
a. Determine the depreciable cost.
$
b. Determine the double-declining-balance rate.
%
c. Determine the double-declining-balance depreciation for the
first year.
$
1) Computer equipment was acquired at the beginning of the year at a cost of $53,900....
1) Computer equipment was acquired at the beginning of the year
at a cost of $53,900. It had an estimated residual value of $4,300
and an estimated useful life of 5 years.
a. Determine the depreciable cost.
b. Determine the straight-line rate.
c. Determine the annual straight-line
depreciation.
2) A machine costing $45,000 with a 5-year life and $2,700
residual value was purchased January 2. Compute depreciation for
each of the five years, using the double-declining-balance
method.
Year 1
$...
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment Equipment was acquired at the beginning of the
year at a cost of $34,000. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $660. a. What was
the depreciation for the first year? b. Assuming the equipment was
sold at the end of year 2 for $7,860, determine the gain or loss on
the sale of the equipment.
Equipment was acquired at the beginning of the year at a cost of $38,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$38,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $750.
a. What was the depreciation for the first
year?
$
b. Assuming the equipment was sold at the end
of year 2 for $8,900, determine the gain or loss on the sale of the
equipment.
$ Loss
Feedback
Book value is the asset...
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of
$29,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $570.
a. What was the depreciation for the first
year?
$
b. Assuming the equipment was sold at the end
of year 2 for $6,820, determine the gain or loss on the sale of the
equipment.
$
c. Journalize the...
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment Equipment was acquired at the beginning of the
year at a cost of $575,000. The equipment was depreciated using the
straight-line method based on an estimated useful life of 9 years
and an estimated residual value of $44,745. a. What was the
depreciation for the first year? Round your answer to the nearest
cent. $ b. Using the rounded amount from Part a in your
computation, determine the gain(loss) on the sale of the equipment,
assuming it...
Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$75,720. The equipment was depreciated using the straight-line
method based upon an estimated useful life of 6 years and an
estimated residual value of $7,920.
Required:
a.
What was the depreciation expense for the first year?
b.
Assuming the equipment was sold at the end of the second year
for $57,370, determine the gain or loss on sale of the
equipment.
c.
Journalize the entry to record...
Equipment was acquired at the beginning of the year at a cost of $79,560. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$79,560. The equipment was depreciated using the straight-line
method based upon an estimated useful life of 6 years and an
estimated residual value of $7,800.
a. What was the depreciation expense for the first year?
$
b. Assuming the equipment was sold at the end of the second year
for $60,100, determine the gain or loss on sale of the
equipment.
$
c. Journalize the entry to...
Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$40,000. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $780. a. What was
the depreciation for the first year?
b. Assuming the equipment was sold at the end of year 2 for
$9,240, determine the gain or loss on the sale of the equipment.
$fill in the blank
c. Journalize the entry...
Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$562,500. The equipment was depreciated using the straight-line
method based on an estimated useful life of 9 years and an
estimated residual value of $40,600. a. What was the
depreciation for the first year? Round your answer to the nearest
cent.
b. Using
the rounded amount from Part a in your computation, determine the
gain(loss) on the sale of the equipment, assuming it was sold at
the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
ADVERTISEMENT