Question
In: Accounting
October 1, 2019 Lynbrook Inc. purchased a new machine for one of its stores. The machine's...
October 1, 2019 Lynbrook Inc. purchased a new machine for one of
its stores. The machine's estimated useful life at the time of the
purchase was 20 years, and its residual value was $5,000.
Purchase price of machine $175,000 Freight costs 7,000 Installation
of machine 17,000 Sales taxes 6,000 Cost to repair machine damaged
during installation 1,000
Instructions: A. Compute depreciation expense for the years 2019
through 2021 under each depreciation method listed below: 1.
Straight-line, with fractional years rounded to the nearest whole
month. (partial-years method) 2. 200 percent declining-balance,
using the half-year convention.
B. Calculate the book value for the two depreciation methods
applied in part A at the end of 2021?
C. March 31, 2022 Lynbrook Inc. sold the machine that was purchased
above for $175,000. Prepare the journal entry (in proper general
journal format) to record the sale of the machine under the
following conditions: 1. Straight-line, with fractional years
rounded to the nearest whole month. (partial-years method) 2. 200
percent declining-balance, using the half-year convention.
Reminder: Continue using the excel HW policies for preparing your
solutions to the above questions, including the standard four line
heading.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Question
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