An asset (not an automobile) put in service in June 2019 has a depreciable basis of $535,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2019?
Q: n March 10, 2021, S Incorporated paid property taxes of 240,000 for the calendar year 2021. On April…
A: Concept - Interim reporting treats each interim period as an integral part of the annual period.…
Q: On March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. Itis the company’s policy to…
A: Formula: Depreciation rate = ( 100 / Useful life ) x 2
Q: On April 5, 2021, Kinsey places in service a new passenger automobile that cost $60,000. The car is…
A: Depreciation is an accounting method for dispersing a tangible or physical asset's cost over its…
Q: On January 01, 2019, the AI Wadi Company purchased machinery for OR 45,000. The estimated useful…
A: Depreciation:-It is the reduction in the value of the assets due to normal wear and tear. It is the…
Q: On January 1, 2020, a machine was purchased for $1.060,000 by Marin Co. The machine is expected to…
A: Year Annual Payments PVIF @ 9 % Present value Interest 1 250000 1 250000 0 2 250000 0.9174…
Q: An asset (not an automobile) put in service in June 2020 has a depreciable basis of $1,055,000, a…
A: but subject to the amount of taxable income
Q: A corporation bought a machine for RP 8,000 with a commercial useful life of 4 years and a fiscal…
A:
Q: An asset (not an automobile) placed in service in June 2021 has a depreciable basis of $35,000 and a…
A: Given : Depreciable Asset in June 2021 = $35000 Recovery Period = 5 years Calculate : what is the…
Q: During 2019, White Company determined that machinery previously depreciated over a 7-year life had a…
A: The accumulated depreciation is computed as total depreciation charged on fixed assets till date.
Q: On August 1, 2021, FAITH Inc purchased a new machine on a deferred payment basis. A down payment of…
A: Capitalized cost of Machine: When constructing or acquiring fixed assets, capitalized expenses are…
Q: Pleasant Planes Co. purchased a new jet on January 1, 2019 for $5,000,000. Pleasant Planes Co.…
A: Calculation of Depreciation Expense for 2019 Depreciation Expense for 2019 = Number of miles flew in…
Q: Equipment was purchased on January 2, 2020, for $24,000, but no portion of the cost has been charged…
A: Depreciation: Depreciation is the reduction in the value in a fixed asset due to natural factors…
Q: During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average…
A: The question is based on the concept of Accounting Standard on Borrowing Cost.
Q: On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co. The machine is…
A: Initial measurement of Lesae liability and Right-of-Use Asset: PV of lease payment = Annual lease…
Q: On January 1, 2018, EM purchased a patent for a new consumer product for ₱4,800,000. At the time of…
A: The Patent useful life was 10 years but after purchase useful life changed to 8 years. Therefore…
Q: The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged…
A: Recording of the above transactions are as follows:
Q: During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average…
A: Capitalized interest refers to the amount of interest that is added to the cost of the fixed asset.…
Q: On May 15, 2020, an asset with a depreciable basis of $40,000 is put into service. The half-year…
A: Accounting: It is the process of recording any financial transactions incurred in the financial year…
Q: Rk Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…
A: As per Income tax law, depreciation on fixed cost is allowed as deduction from business income.…
Q: loss on replacement to be recognized for 2020?
A: Useful life = 10 years Life utilised = 6 years [ Jan 1,2014 - Jan 1, 2020] Accumulated…
Q: Colin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). This machinery…
A: Definition: Prime Cost method: It is known as the straight-line depreciation method. Depreciation…
Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an…
A: The straight line method of calculating depreciation is the most simplest way to determine…
Q: On October 01, 2021, a national government agency purchased and delivered 30 units of Communication…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Prepare general journal entries for the transactions
A: Straight line of Depreciation It is the simple way which measures the loss of value of an asset…
Q: An equipment of KAY Corporation was tested for impairment on December 31, 2019. The carrying value…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: The allowance method for accounting for uncollectible accounts is based on which of the following…
A: Question:1 The allowance method for accounting of Uncollectible is based on the matching principle…
Q: How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020,…
A: “Since you have posted many questions, we will solve first for you. To get the remaining questions…
Q: Sheffield Corp., which has a calendar year accounting period, purchased a new machine for $90000 on…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: On April 5, 2020, Kinsey places in service a new automobile that cost $38,750. He does not elect §…
A: PLEASE LIKE THE ANSWER: Answer: 2020= $ 7,070 2021= $ 11,270
Q: A company purchases equipment for $40,000 on Aug 1, 2019. It estimates that the equipment will have…
A: Depreciation = Cost of equipment - Salvage value / Useful life of asset = $…
Q: An asset (not an automobile) put in service in June 2020 has a depreciable basis of $25,000 and a…
A: Depreciation - It is method of accounting for allocating cost of tangible assets over its useful…
Q: Marigold A.Ş. purchased a piece of equipment at the beginning of 2019. The equipment cost t 431,720.…
A: Sum of year = 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 36
Q: How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020,…
A: “Since you have posted a question with multiple sub parts, we will solve first 3 sub parts for you.…
Q: On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co. The machine is…
A: The main difference between IFRS and ASPE using is that the lease is Capital Lease under IFRS while…
Q: In March 2019, Dempo Org purchased production equipment valued at $640,000. In 2021, auditors…
A: Introduction:- Dempo Org invested $640,000 on production equipment. Auditors determined in 2021 that…
Q: A company purchases equipment for $30,000 on July 1, 2019. It estimates that the equipment will have…
A: Straight-line Depreciation = (Cost - Salvage Value) / Useful Life Note: In 2019, depreciation will…
Q: In 2020, Bailey Corporation discovered that equipment purchased on January 1, 2018, for $50,000 was…
A: Pass necessary rectification entries in the books of Bailey Corporation.
Q: On January 1, 2019, Uptown Builders purchased a machine for $200,000. Uptown's policy is to…
A: Depreciation under Straight line method is computed in the following manner: Depreciation = (Cost…
Q: An asset is placed in service on May 15, 2020 and has a depreciable basis of $40,000. The asset is…
A: Explanation : Cost of good = $40,000 Date of purchase = May 15, 2020 Depreciation rate for first…
Q: An entity purchased equipment on January 1, 2020 for P8,000,000. The equipment had a useful life of…
A: Depreciation expense- Double-declining = 2 x Cost of the asset x Depreciation rate Depreciation rate…
Q: On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated…
A: Solution: Under sum of years' digits method of depreciation. Depreciation is based on sum of digits…
Q: On August 2019, a company purchased an equipment for 33,000 $, which is expected to have ten useful…
A: Declining Balance Method Depreciation rate = 1 - Salvage valueCostYears Double Declining Method…
Q: On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is expected to…
A: A. Following are the calculation of income before income tax:
Q: An entity purchased equipment on January 1, 2020 for P5,000,000. The equipment had a useful life of…
A: Straight Line Depreciation=Cost-Residual valueUseful lifeDouble declining Depreciation=Straight Line…
Q: Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional…
A: Solution 10: Charging installation cost of P50,000 on repair expense, will result in overstatement…
Q: The carrying amount of Building C on December 31, 2020 is P8,000,000 and had remaining useful life…
A: Information given in question: Carrying amount of Building C on December 31, 2020 is P8,000,000.…
Q: An equipment of KAY Corporation was tested for impairment on December 31, 2019. The carrying value…
A: An asset is impaired if its recoverable amount is below the value currently shown on the statement…
Q: A manufacturer of shipping equipment decided to lease an equipment with a fair value of P2,500,000…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: If the company realizes at the start of 2021 that the remaining useful life of the 6-year-old…
A: Depreciation is the demunition in the value of an asset on account of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
- During 2019, White Company determined that machinery previously depreciated over a 7-year life had a total estimated useful life of only 5 years. An accounting change was made in 2019 to reflect the change in estimate. If the change had been made in 2018, accumulated depreciation at December 31, 2018, would have been 1,600,000 instead of 1,200,000. As a result of this change, the 2019 depreciation expense was 100,000 greater than it would have been if no change were made. Ignoring income tax considerations, what is the proper amount of the adjustment to Whites January 1, 2019, balance of retained earnings? a. 0 b. 100,000 c. 280,000 d. 400,000Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
