Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year for $631,697, determine the gain or loss on the sale of the equipment. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

Q: Perdue Company purchased equipment on April 1 for $39,600. The equipment was expected to have a…

A:

Q: Equipment was acquired at the beginning of the year at a cost of $280,000. The equipment was…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset.

Q: Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a…

A: Depreciation: When a new fixed asset is purchased, it does not have the price that was at the time…

Q: On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Equipment was purchased on January 5, year 1, at a cost of $90,000. The equipment had an estimated…

A: Depreciation  under  straight-line method  = (cost - salvage value)/useful life

Q: Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was…

A: a. Depreciation expense for the first year = (Cost of the assets - salvage value)/ Life of the…

Q: Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was…

A: Double-declining-balance method: It is an accelerated method of depreciation under which the…

Q: At the beginning of the fiscal year, G&J Company acquired new equipmentat a cost of $100,000.…

A:

Q: Equipment with a cost of $148,651 has an estimated residual value of $8,247 and an estimated life of…

A: Depreciation: Reduction in value of asset over a period of time due to obsolescence, wear and tear…

Q: Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was…

A: DDB is the method that counts as an expense more quickly when compared to SLM that uses same amount…

Q: Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment was…

A: Introduction: A record is often kept in the general ledger, but it can also be kept in a single…

Q: Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a…

A: Given that, cost of the asset = $86670 The useful life of asset = 3 Years total operating hours =…

Q: Equipment acquired on January 9, 20Y3, at a cost of $709,000, has an estimated useful life of 19…

A: Annual depreciation = (Cost of equipment - estimated residual value) / estimated useful life  =…

Q: An equipment was purchased for $30,000. It has a useful life of 5 years, and a residual value of…

A: Depreciation refers to the noncash expense which is levied on fixed assets due to wear and tear…

Q: Equipment was acquired at the beginning of the year at a cost of $76,380. The equipment was…

A: Formula   Depreciation under straight line method =    Asset cost - salvage value / useful life

Q: Computer equipment was acquired at the beginning of the year at a cost of $48,125 that has an…

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

Q: I have tried this a number of times and cannot figure out A,B,& C   Sale of Equipment Equipment…

A: a. Calculate the deprecation expense under straight line method.

Q: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…

A: a. Annual depreciation = (cost of the assets - residual value) / life of the assets =…

Q: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…

A: Year Book value Depreciation Accumulated Depreciation Book value 1 $537,500 $119,444.4444 $119,444…

Q: Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was…

A: Double declining balance method : A double-declining balance method is a form of an accelerated…

Q: OliverCompany purchased tool sharpening equipment on October 1 for $138,000. The equipment was…

A: Depreciation refers to the reduction in the value of a fixed asset due to wear and tear…

Q: Equipment was acquired at the beginning of the year at a cost of $650,000. The equipment was…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a…

A: Depreciation represents the fall in the historical cost of the fixed assets because of estimated…

Q: Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has…

A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…

Q: Equipment was acquired at the beginning of the year at a cost of $465,000. The equipment was…

A: a. Calculate the depreciation expense for the first year under straight line method.

Q: On January 1, Year 1, Missouri Co. purchased a truck that cost $56,000. The truck had an expected…

A: Double declining rate = 1/Useful life*2

Q: Perdue Company purchased equipment on April 1 for $48,870, The equipment was expected to have a…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/3 years) x 2 =…

Q: Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was…

A: a. Compute the depreciation for the first year: Cost of the Equipment $612,500 Less: Residual…

Q: Equipment was acquired at the beginning of the year at a cost of $280,000. The equip-ment was…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/16 years) x 2 =…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $40,250. The…

A: a.   Formulas for the above table:

Q: Equipment was acquired at the beginning of the year at a cost of $587,500. The equipment was…

A: Solution:- a)Calculation of Depreciation using Straight line method as follows under:- Formula:-…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…

A: Straight-line depreciation is a method of depreciation where the depreciation expenses for the life…

Q: Perdue Company purchased equipment on April 1 for $69,660. The equipment was expected to have a…

A: Double-declining balance method=1Useful Life×2=13×2=0.6666 or 66.6667%

Q: Equipment was acquired at the beginning of the year at a cost of $78,840. The equipment was…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life

Q: Machinery was purchased on January 1 for $51,000.  The machinery has an estimated life of 7 years…

A: Depreciation: Depreciation Cost is the cost that is allocated over its life and it is charged as an…

Q: Perdue Company purchased equipment on April 1 for $73,980. The equipment was expected to have a…

A: Depreciation: Depreciation is an accounting method of allocating the cost of a tangible or physical…

Q: Equipment was acquired at the beginning of the year at a cost of $33,250. The equipment was…

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

Q: Equipment was acquired at the beginning of the year at a cost of $550,000. The equipment was…

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

Q: Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was…

A: Given,  Cost of asset = $78,660 Residual value = 7,980 Useful life = 6 years Depreciation method -…

Q: Equipment was acquired at the beginning of the year at a cost of $30,000. The equipment was…

A: Depreciation rate under double declining balance method = 2 / Useful life = 2 / 10 years = 20%

Q: Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was…

A: Cost of equipment = $ 575000 Estimated residual value = $ 49295 Estimated useful Life = 9 years

Q: Computer equipment was acquired at the beginning of the year at a cost of $60,093 that has an…

A: Formulas: Depreciation = (Cost of asset - residual value) / Life of the asset

Q: Perdue Company purchased equipment on April 1 for $23,490. The equipment was expected to have a…

A: Depreciation may be defined as the decrease in the value of assets due to regular use or time etc.

Q: Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has…

A:

Q: Equipment was acquired at the beginning of the year at a cost of $78,360. The equipment was…

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

Q: Perdue Company purchased equipment on April 1 for $52,650. The equipment was expected to have a…

A: Depreciation is the decrease in the value of fixed tangible asset due to usage, time, obsolence or…

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.