please help me to solve this problem Inrecent years, Marigold Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting thedepreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below.SalvageUseful LifeDepreciationMachineAcquiredCostValue(in years)MethodJan. 1, 2020$ 9.400$ 14,000Straight-line2July 1. 202191.50010.500Declining-balance3Nov. 1. 202162.5008,500Units-of-activityFor the declining-balance method, Marigold Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 27,000. Actual hours of use in the first 3years were 2021, 700, 2022, 4,200; and 2023, 6,200.For Bus #3. calculate depreciable cost per mile under units-of-activity method.Depreciable costSper mileeTextbook and Media

Business organizations are required to charge the depreciation expense so as to fairly present the…

Inrecent years, Marigold Company has purchased three machines. Because of frequent employee turnover in the accounting departiment, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below Salvage Useful Life (in years) Depreciation Machine Acquired Cost Value Method Jan. 1, 2020 $99.400 $14.000 Straight-line 2 July 1, 2021 91.500 10.500 5 Declining-balance Nov. 1. 2021 62.500 8.500 Units-of-activity For the declining-balance method, Marigold Company unes the double-declining rate. For the units-of-activity method, total machine hours are expected to be 27,000. Actual hours of use in the first 3 years were 2021, 700, 2022, 4,200; and 2023, 6.200. For Bus 3, calculate depreciable cost per mile under units-ot-activity method. Depreciable cost per mile

Inrecent years, Marigold Company has purchased three machines. Because of frequent employee turnover in the accounting departiment, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below Salvage Useful Life (in years) Depreciation Machine Acquired Cost Value Method Jan. 1, 2020 $99.400 $14.000 Straight-line 2 July 1, 2021 91.500 10.500 5 Declining-balance Nov. 1. 2021 62.500 8.500 Units-of-activity For the declining-balance method, Marigold Company unes the double-declining rate. For the units-of-activity method, total machine hours are expected to be 27,000. Actual hours of use in the first 3 years were 2021, 700, 2022, 4,200; and 2023, 6.200. For Bus 3, calculate depreciable cost per mile under units-ot-activity method. Depreciable cost per mile

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
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Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Kam 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.
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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?