4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for 2,80,000 and spent 10,000 on its carriage and 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be 20,000. a. Prepare Machine and Depreciation accounts for the first four years by providing depreciation on a straight-line method. Accounts are closed on March 31st every year. b. Prepare Machine account, Depreciation account, and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using the diminishing line method. Accounts are closed on March 31st every year.

4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for 2,80,000 and spent 10,000 on its carriage and 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be 20,000. a. Prepare Machine and Depreciation accounts for the first four years by providing depreciation on a straight-line method. Accounts are closed on March 31st every year. b. Prepare Machine account, Depreciation account, and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using the diminishing line method. Accounts are closed on March 31st every year.

Name: Note:-Do not provide handwritten solution. Maintain accuracy and quali
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. 4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for2,80,0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

See similar textbooks

Similar questions

Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
XYZ Company purchased a machine on January 1, 2014. The cost of the machine was $175,000 with a useful life of 10 years and a salvage value of $25,000. Using the straight- line method, the depreciation expense per year will be: O a. $15,000 O b. $17,500 O c. $20,000 O d. $18,500
4. Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine-hours. The machine was actually used for 4,800 hours in 2022 and 3,150 hours in 2023. What would be the balance in the accumulated depreciation account at December 31, 2023, if the straight-line method were used? a.$216,000 b.$236,000 c.$240,000 d.$250,000
4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for 2,80,000 and spent 10,000 on its carriage and 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be € 20,000. a. Prepare Machine and Depreciation accounts for the first four years by providing depreciation on a straight-line method. Accounts are closed on March 31st every year. b. Prepare Machine account, Depreciation account, and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using the diminishing line method. Accounts are closed on March 31st every year.
Lemon Company bought a machine on January 1, 2019. The machine cost $72,000 and had an expected salvage value of $12,000. The life of the machine was estimated to be 5 years. Using straight line depreciation, the book value of the machine at the beginning of the third year would be: Select one: a. $48,000 b. $60,000 c. $24,000 d. $36,000
Carla Vista Products purchased a machine for $66400 on July 1, 2025. The company intends to depreciate it over 8 years using the double-declining balance method. The salvage value is $6700. Depreciation for 2026 to the closest dollar is $8300. O $33200. O $14525. $13200.
SIMCO Company purchases a machine on 1/1/2020, at a cost of $24,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. On 1/1/2022, management decides to change the useful life to 7 years, instead of 5 years, and keep salvage value the same. Required: Calculate the depreciation expense on the machine for the year 2022?
Martin Company purchases a machine at the beginning of the year at a cost of $63,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $5,000 salvage value. The book value of the machine at the end of year 5 is: Multiple Choice $11,600 $58,000. $25,200. $5,000. $0. 2 of 10 E Next > < Prev
A firm purchased a Machine on 1 January 2010. The Machine has a 5 year life and no residual value. The Cost of the Machine was $100,000. The firm uses straight line depreciation and charges depreciation on a monthly basis. The Machine was sold on 30 September 2013 for $20,000 Cash. The Gain or Loss on Disposal of the Machine is: Select one: O a. Loss of $25,000 O b. Gain of $25,000 O c. Gain of $5,000 O d. None of these answers Oe. Loss of $5,000