Question
In: Accounting
On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of...
On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $90,000 with an estimated residual value of $7,000.
a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2018.
a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2018.
a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2018.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of...
On January 2, 2018, Jatson Corporation acquired a new machine
with an estimated useful life of five years. The cost of the
equipment was $60,000 with an estimated residual value of
$5,000.
a-1. Prepare a complete depreciation table under the
straight-line method. Assume that a full year of depreciation was
taken in 2018.
a-2. Prepare a complete depreciation table under the 200 percent
declining-balance method. Assume that a full year of depreciation
was taken in 2018.
a-3. Prepare a complete...
On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life...
On January 1, 20x1, Perdrillo Company acquired a new drilling
machine costing $10,000. Estimated useful life of five years or
36,000 drilling operations and estimated salvage value of
$1,000.
REQUIRED: Encircle
the one correct answer for each of the following:
Show all supporting
calculations or no credit.
Using straight-line depreciation, 20x1 depreciation expense
is:
a. $2,000 b. $7,200 c. $1,800 d. $900
e. None of these.
Using units-of-production depreciation and that 8,000 drilling
operations were made during 20x1, depreciation expense...
A machine was purchased on January 1 for $100,000. The machine has an estimated useful life...
A machine was purchased on January 1 for $100,000. The machine
has an estimated useful life of 4 years with a salvage value of
$10,000. Under the straight-line method, accumulated depreciation
at the end of year 2 is:
A copy machine acquired with a cost of $1,900 has an estimated useful life of 4...
A copy machine acquired with a cost of $1,900 has an estimated
useful life of 4 years. It is also expected to have a
useful operating life of 10,000 copies. Assuming that it will have
a salvage value of $100, determine the depreciation for the
first year and second year by the (15 points)
(a)
straight-line method
(b)
double-declining-balance method
(c)
units-of-output method (4,500 copies were made the first year
3,200 copies second year)
A copy machine acquired with a cost of $1,410 has an estimated useful life of 4...
A copy machine acquired with a cost of $1,410 has an estimated
useful life of 4 years. It is also expected to have a useful
operating life of 13,350 copies. Assuming that it will have a
salvage value of $75, determine the depreciation for the first year
and second year by the (15 points) (a) straight-line method (b)
double-declining-balance method (c) units-of-output method (4,500
copies were made the first year 3,200 copies second year
. Rabbit Co has 2 options to acquire a new machine with an estimated useful life...
. Rabbit Co has 2 options to acquire a new machine with an
estimated useful life of 6 years. It can buy it today, the 1st
January 20X3 at a cash price or it can lease the asset under the
following agreement:
Fair value of the asset - $100,000
An initial payment of $13,760 will be payable straight away
5 further annual payments of $20,000 will be due, beginning on
1st Jan 20X3
The interest rate implicit in the lease...
A machine acquired on January 4, 2009, at a cost of $425,000, has an estimated useful...
A machine acquired on January 4, 2009, at a cost of $425,000,
has an estimated useful life of nine years and an estimated
residual value of $65,000. (10 points)
What was the amount of depreciation for the years 2009, 2010,
and 2011, using the straight-line method of depreciation?
What was the book value of the machine on January 1, 2012?
Assume that the machine was sold on January 9, 2012, for
$290,000 journalize the entry to record the
sale ...
A machine acquired on January 4, 2009, at a cost of $425,000, has an estimated useful...
A machine acquired on January 4, 2009, at a cost of $425,000,
has an estimated useful life of nine years and an estimated
residual value of $65,000. (10 points)
What was the amount of depreciation for the years 2009, 2010,
and 2011, using the straight-line method of depreciation?
What was the book value of the machine on January 1,
2012?
Assume that the machine was sold on January 9, 2012, for
$290,000 journalize the entry to record the
sale ...
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690.
Required:
a. What was the annual amount of depreciation for Years 1-3
using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of
Year 3?
c. Assuming that the equipment was sold on January 3 of Year 4
for $256,655, journalize the entry to record the sale....
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690. A. What was the annual amount of depreciation for the
Years 1-3 using the straight-line method of depreciation? B. What
was the book value of the equipment on January 1 of Year 4? C.
Assuming that the equipment was sold on January 3 of Year 4 for
$256,655, journalize the entry to record the sale....
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