Company purchased an equipment for $ 420,000 on June 1, 2019. It is estimated to have a 4-year useful life and $ 15, 000 residual value. Using the declining balance method of depreciation , the ending balance of accumulated depreciation at December 31 2020 A. $ 155.000 B. $ 271,250 C. $ 271,500 D. None of the options are correct E. $ 86.250

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Depreciation - Depreciation is computed every year due to wear and tear of the assets, for the…

Q: The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was…

A: SOLUTION- DEPRECIATION-  IT INDICATES REDUCTION IN VALUE DEPENDS ON LIFE OF ASSETS . LIFE OF ASSETS…

Q: Citi Company purchased factory equipment on March 10, 2019. The company accountant revealed the…

A: Depreciation is a demunition [reduction] in the value of an asset on account…

Q: ROSE Company purchased machinery on January 1, 2020. It has an estimated useful life of four years…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: The following are some transactions of Sandhill Company for 2021. Sandhill Company uses…

A: solution concept under straight line method the asset is depreciated equally over the useful life…

Q: using sum of years’ digits? What is the depreciation for 2020 using sum of years’ digits? What is…

A: 1. Answer: a The gap of 1st April to 31st December in the year 2019 is 9 months; therefore, the…

Q: Togo’s Sandwiches acquired equipment on April 1, 2021, for $18,000. The company estimates a residual…

A: For the year 2021: 9 months is computed from April to December

Q: Kam Company purchased a machine on January 2, 2019, for $20,000. The machine had an expected life of…

A: The question is based on the concept of Depreciation Accounting. Depreciation is the reduction in…

Q: Create Co. purchased equipment on November 1, 2021 for P850,000. The company estimates that the…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Sorter Company purchased equipment for $380,000 on January 2, 2019. The equipment has an estimated…

A: Depreciation on an asset can be calculated using different methods: Straigh line method Sum of years…

Q: BTL Company purchased a tractor at a cost of $90,000.  The tractor has an estimated salvage value of…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Broadway Ltd. purchased equipment on January 1, 2019, for $630,000, estimating a seven-year useful…

A: Annual depreciation-Straight line = ($630,000 - $0)/7 Annual depreciation-Straight line = $90,000

Q: Ponderosa Farms purchased some equipment on January 1, 2020 for $12,600. The equipment has an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Easy Company acquired an equipment on January 1, 2020 for P5,000,000. Depreciation is computed using…

A: Depreciation is only an estimate by the organization so such estimates can be made by taking various…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: DEPRECIATION: Company L purchased equipment for 150,000 on 1/1/2020. The equipment has a useful life…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Compute depreciation under: (i) straight line method (ii) unit of output (iii) working hours…

A: Depreciation  under straight line method = (Cost of Asset - Salvage value / useful life )…

Q: Brown Corporation sold a piece of equipment on June 30, 2020 for $150,000 cash. The equipment had…

A: Depreciation describes the expenses of wear & tear while using the asset for the organization.…

Q: salvage value. The Company uses straight-line depreciation. At December 31, 2021 and December 31,…

A: Concept of Impairment of assets

Q: Gray Corporation purchased a delivery van on March 1, 2020. Assume this van was the company's only…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: Rigley Industries sells a plant asset which originally cost $240,000 for $90,000 on December 31,…

A: SOLUTION-   GAIN OR LOSS ON DISPOSAL = ORIGINAL COST -ACCUMULATED DEPRECIATION- SALES VALUE.

Q: N company purchased a compilation system on jan 1, 2019 at a cash cost of $25,000. The estimated…

A: Solution:- Calculation depreciation using double declining balance depreciation method as follows:-…

Q: 1. The company computes depreciation to the nearest day. (Use 12 months of 30 days each.) 2. The…

A: Since there are multi sub-parts, we will solve first three for you. To get the remaining questions…

Q: The Peridot Company purchased machinery on January 2, 2019, for $800,000. A five-year life was…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Great Value Company purchased equipment on January 1, 2020, for $75,000, with an estimated useful…

A: Given, Jan 1 2020 Purchase price = $75000 Life = 7 years Residual value = $ 5000 Sold @ July 1 2022

Q: On January 1, 2017, Bride Company purchased for P2,400,000 a machine with a useful life of ten years…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%

Q: Company B purchased equipment for 110,000 on 1/1/2020. The equipment has a useful life of 5 years…

A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

Q: Company D purchased equipment for 110,000 on 1/1/2020. The equipment has a useful life of 4 years…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: Mountain Co. purchased machinery that cost $800,000 on January 1, 2019. The entire cost was recorded…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to…

A: "Since you have asked multiple questions, we will solve one question for you. If you want any…

Q: Larkspur Enterprises purchased equipment on January 1, 2020, at a cost of €339,000. Larkspur uses…

A: As per relevant standard depreciation is mandatory and it is to be charged on the asset. Straight…

Q: Cutter Enterprises purchased equipment for $72.000 on January 1, 2018. The equipment is expected to…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Solution.      Cost = P2,750,000  Life (N) = 10 years  Sum of years of digits  = N (N + 1) ÷ 2  = 10…

Q: is to use the 200% double declining balance method for the first two years of the asset’s life and…

A: Accumulated Depreciation: The contra assets account which is used for accumulating all those…

Q: On January 1, 2021, Ding Company acquired an equipment with useful life of 8 years and P390,000…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Larkspur Enterprises purchased equipment on January 1, 2020, at a cost of €339,000. Larkspur uses…

A: Unrealized gain on revaluation = Fair value of equipment - Carrying value of equipment

Q: The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life…

A: Calculation of depreciation value over remaining 3 years:   Particulars Amount   Cost of the…

Q: AI Maghribi Co. purchased equipment for RO 300,000 on January 1, 2019. It was estimated that it…

A: Depreciation per hour = (Cost of the assets - residual value) / estimated hours =…

Q: Faithful Company purchased an equipment on January 2, 2021 for P3,000,000. The equipment had an…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: AI Maghribi Co. purchased equipment for RO 300,000 on January 1, 2019. It was estimated that it…

A: As posted two questions we are answering only first question kindly repost the unanswered question…

Q: Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used,…

A: Given, Cost of asset = $8,160 Residual value before change = $1,020 Residual value after change =…

Q: Citi Company purchased factory equipment on March 10, 2019. The company accountant revealed the…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%

Q: The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life…

A: Straight line method of depreciation is the most straightforward approach that implies that the…

Q: Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had…

A: Depreciation is charged to record reduction in value of asset over the period of time. It can be…

Q: AI Maghribi Co. purchased equipment for RO 300,000 on January 1, 2019. It was estimated that it…

A: Depreciation per hour = (Cost of equipment - residual value) / Estimated hours = (RO 300,000 - RO…

Q: ORCHID Company purchased machinery on January 1, 2020. It has an estimated useful life of four years…

A: Depreciation is the allocation of cost of asset over the useful life of the asset.

Q: The gain or loss on disposal is _________________. (Indicate whether gain or loss)

A: Gain or Loss on disposal is = Sale proceeds -Carrying amount of Asset

Q: 2. On July 1, 2020, Dae Su Company purchased for P200,000 snow-making equipment having an estimated…

A: Depreciation is the allocation of cost over the life of an asset using different methods like Double…

Q: A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates…

A: When the carrying value of an asset is not recoverable, a company records a write-off referred to as…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.