6. Keaubie Co. retired a piece of equipment that was fully depreciated and had no salvage value. The cost of the equipment was $66,500. Journalize the retirement of this asset.
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- Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.18. The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale were a. less than current market value. b. greater than cost. c. greater than book value. d. less than book value. 19. Dewey Company purchased a machine that was installed and placed in service on January 2, 2001, at a total cost of $480,000. Residual value was estimated at $80,000. The machine is being depreciated over ten years by the double-declining-balance method. For the year 2002, Dewey should record depreciation expense of a. $64,000. b. $76,800. c. $80,000. d. $96,000. 20. On February 12, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building .......................... $ 35,000 Title…A company purchased a piece of equipment for $50,000 with an estimated useful life of 10 years and no salvage value. Calculate the annual depreciation expense using the straight-line depreciation method.
- Swifty Company's delivery truck, which originally cost $83100, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57200. The company received $47300 reimbursement from its insurance company. The gain or loss as a result of the fire was $21400 gain. $35800 loss. $35800 gain. $21400 loss.A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000 and a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,200 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:Bright Company purchased factory equipment which was installed and put into service January 3, 2002 at a total cost of P1,280,000. Salvage value was estimated at P80,000. The equipment is being depreciated over 8 years by the double declining balance method. For the year 2003, how much depreciation expense should Bright record on this equipment?A. P225,000B. P240,000C. P300,000D. P320,000
- Mellow Co. depreciated a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning of the fifth year, it was determined that the asset will last another four years. What amount should Mellow report as depreciation expense for year 5? $1,500 $600 $2,400 $900Kerr Company purchased a machine for P115,000 on January1, year 1, the company’s first day of operations. At the end of the year, the current cost of the machine was P125,000. The machine has no salvage value, a five-year life, and is depreciated by the straight-line method. For the year ended December 31,year 1, the amount of the current cost depreciation expense which would appear in supplementary current cost financial statements is P14,000 P23,000 P24,000 P25,00016. XYZ Inc. purchased machinery at an initial cost of P2.5 million. After depreciating the machinery over a period of three years, XYZ Inc. decided to revalue this machinery. Since there was no other machinery owned by XYZ Inc. when it revalued this machinery, such revaluation was that of the entire class of an item of property, plant, and equipment. At the date of revaluation, accumulated depreciation amounted to P1 million. The fair value of the asset, by reference to transactions in similar assets, is assessed to be P1.75 million. Determine the balance of revaluation surplus after a year. (Round off your answer to the nearest peso)
- A truck that cost $19,200 and was expected to last 5 years was scrapped after 3 years. If the truck was being depreciated on a straight-line basis (with no salvage value), the loss recognized on disposal would be a.$11,520. b.$19,200. c.$7,680. d.$9,600.Queen Restaurant purchased huge electric griller equipment amounting to P1,300,000. When the electric griller was permanently retired from use, the accumulated depreciation was P490,000 and has a salvage value of P70,000. How much is the deductible loss from permanent retirement?Eagle Company purchased a piece of machinery for $75,000 on January 1, 20x1, and has been depreciating the machine using the double-declining-balance method based on a five-year estimated useful life and no salvage value. On January 1, 20x3, Eagle decided to switch to the straight-line method of depreciation. The residual value is still zero and the estimated useful life did not change. Required: a) Prepare the appropriate journal entry, if any, to record the accounting change. b) Prepare the journal entry to record depreciation for 20x3. Huckleberry Company purchased a machine on January 1, 20x1. The machine had a cost of $350,000 with a $10,000 residual value. The estimated useful life of the machine was eight years. On January 1, 20x3, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation. Required: Prepare the journal entry to record…