I only need help for question BE 11.3 in Accounting. BE I13 (LOID Use the info for Lock ya rdCompany given in BEI12. (9) ComPyte 2020de prec. expense using the Sum-of -the years-digitsmethod. (6) Compute 2020 deprec. expense using theSum-Of-the-years -digits methody assuming themachinery was Purchased on APril 1,2020ing the Jeffrey wang9/36/2021Brief Exercises(Unless otherwise instructed round all answers to thenearest dollard12BE 112 (L01) Lockyard Company PurchasedmachinerY on January Ij 2020, for $80j0ou The machineryis estimated to have a salvage Value of $9000 afteraUSefyl life of 8 years.

The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Answered: BE 113 (LOI) Use the info, for Lock ya…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
Depreciation Methods On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively. Required: Compute depreciation expense for 2019 and 2020 using the (1) straight-line, (2) double-declining-balance, and (3) units-of-production methods of depreciation.
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?
Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards-R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: 1. Determine the revised annual depreciation expense for 2019 using the straight-line method. 2. CONCEPTUAL CONNECTION How does the revision in depreciation affect the Blizzards-R-Us financial statements?
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.
Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?
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Case C Robert Sporting Goods Company had purchased some equipment (Q107) on January 1, 2014 for $104 000 with an estimated salvage value of $8 000 and a 10-year useful life. On December 31, 2020, there was $67 200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. In preparation for expansion, on March 31, 2021, that equipment was sold for $21 000. Required: i) Complete the following schedule of useful working. Equipment (Q107): $ Cost Answer Salvage Value Answer Depreciable base Answer Annual Depreciation charge Answer Accumulated depreciation to the date of disposal Answer ii) Prepare the necessary journal entries to record the disposal of the equipment on March 31, 2021. When selecting from dropdown lists, if a line item does not apply, select NA and place zero in the field in the number…
Pier Exports purchased equipment on January 1, 2018, at a cost of $600,000. Thecompany estimates that there will be $60,000 salvage value and that the equipmentwill have a useful life of 8 years. The company elects to use the sum-of-the-years'digit method until 2021, at which time the company changes to the straight-linemethod of depreciation for the equipment. Required:1. The equipment's book value at January 1, 2021 is $ _________. Round your final answer to the nearest dollar.2. The annual depreciation expense for 2021 is $ _________. Round your final answer to the nearest dollar.
Student question Time Left : 00:09:30 A company purchased factory equipment on June 1,2021 , for $151000. It is estimated that the equipment will have a $8200 salvage value at the end of its 10 -year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is $8330. $14280. $5950. $7140
Robert Sporting Goods Company had purchased some equipment (Q107) on January 1, 2014 for $104 000 with an estimated salvage value of $8 000 and a 10-year useful life. On December 31, 2020, there was $67 200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. In preparation for expansion, on March 31, 2021, that equipment was sold for $21 000. Required: i) Complete the following schedule of useful working. Equipment (Q107): $ Cost Answer Salvage Value Answer Depreciable base Answer Annual Depreciation charge Answer Accumulated depreciation to the date of disposal Answer

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BE 113 (LOI) Use the info, for Lock ya rd Company given in BEI12. (9) ComRite 2020 de prec. expense using the Sum-of -the Years'-digits. method. (6) Compute 2020 deprec. expense using the Sum- Of-the-years-digits method, assuming the machinery was Purchased on APril 1,220.