On January 1, 2007, Kaisa Company purchased a computer system for P3,240. The company expects to use the system for 3 years. The asset has no salvage value. The book value of the system at December 31, 2008 is
Q: The KOBE Company acquired a drilling machine on October 1,2013 at a cost of $250,000 and depreciated…
A: Capital Expenditure: It is the amount invested by a company to acquire, upgrade, and maintain…
Q: Cruz Company purchased a computer on June 30, 2020, for $16,800. The computer had a salvage value of…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Kenya Company acquired a machine on January 1, 2013 for P8,000,000. The machine has a 10-year useful…
A: Given data, Cost on January 1,2013 =P8,000,000 Residual value =P500,000 Useful life =10 years The…
Q: A surveillance equipment bought by FabLab Mindanao 2 years ago has been book-depreciated by the…
A: Depreciation: Depreciation is the decrease in the market value of fixed assets due to the reasons…
Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…
A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…
Q: Swifty Corporation bought equipment on January 1, 2021. The equipment cost $351000 and had an…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: What is the carrying amount of the plant asset on December 31, 2014 as a result of the decrease in…
A: The company uses cost model to recognize assets. So the decrease in decommissioning liability will…
Q: ABC Company purchased a tooling machine on January 3, 2000 for P500,000. The machine was being…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: On January 1, 2024, Birdman Company purchased for P240,000 a machine with a useful life of 10 years…
A: A change in depreciation method is a change in method that is not distinguishable from a change in…
Q: At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a…
A: Formula:
Q: On January 2, 2000, the Ajax Plumbing Corporation purchases an automatic soldering machine for…
A: SLM and DDBM are two methods of depreciation, where SLM stands for straight line method where we…
Q: On January 1, 2002, STD & Company purchased a large quantity of laptop computers for their…
A: Sum-of-the-years'-digits = 1+2+3+4+5 = 15 years
Q: On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment…
A: Discount rate = 10% Revised useful life = 4 years Annual cash flows from revenues = P200,000 Present…
Q: Pollyanna Publishing, a textbook publishing firm, purchased a new machine for $80,000. This machine…
A: Depreciation Rate for Double-Declining-Balance Method = Straight-Line Method Rate x 2 = (100 /…
Q: Chicken Wings Company purchased a copier for P447,150 on January 1, 2021. The estimated useful life…
A: Since the change in useful life is a change in accounting estimate the effect will be given…
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…
Q: On January 1, 2010, Graham Company purchased a new machine for P2,100,000. The new machine has an…
A: SOLUTION FORMULA = ACCUMULATED DEPRECIATION (SUM OF THE YEARS DIGIT METHOD) =(COST OF ASSET -…
Q: Wardell Company purchased a minicomputer on January 1, 2013, at a cost of $50,000. The computer was…
A: Total sum of digit for 7 year = 1+2+3+4+5+6+7 = 28 Total sum for 3 year = 7+6+5 = 18 Accumulated…
Q: Marigold Company constructed a building at a cost of $2,288,000 and occupied it beginning in January…
A: The value of assets goes on decreasing with the passage of time due to various reasons such as…
Q: On January 2, 2004, Salonga Company purchased a large quantity of personal computers. The cost of…
A:
Q: Star Company purchased a computer on January 2, 2012, at a cost of $2,500. The computer is expected…
A: Formulas: Gain (loss) on sale of computer = Sales value of the computer - Net book value of the…
Q: On July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…
A: Cost of the machine on July 2020::P3,00,000.. Useful life is::5 years... Depreciation…
Q: On January 1, ProTech Co. pays a lump-sum amount of $1,550,000 for land, Building A, Building B, and…
A:
Q: At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a…
A: The formula to compute depreciation under straight line method as follows:
Q: Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in…
A: Depreciation is a decrease in the value of an asset due to various reasons like wear and tear,…
Q: On January 1, 2014, Santo Company purchased a computer system for $30,500. The system had an…
A: Calculate the book value as on Year 2016 beginning as per original estimate. The book value would…
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Marigold Company constructed a building at a cost of $2,288,000 and occupied it beginning in January…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: On July 1, 2015 , Smile Corporation purchased a machine at a cost of P300,000. This machine was…
A: Solution: Annual depreciation on machine using SLM = (Cost - Salvage value) / useful life =…
Q: A company purchased a new machine on May 1, 2012 for $528,000. At the time of acquisition, the…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: During the current year, Benguet Company purchased a secondhand machine at a price of P300,000. A…
A: The cost which is incurred to bring the machine into a working form will be capitalized
Q: On May 1, 2017 Merron Inc. sold a machine that it no longer had any use for. Merron sold the…
A: Depreciation till May=Costuseful life×412=$32,00010×412=$1067
Q: Green Grass Company purchased a tractor at a cost of $150,000 on January 1, 2013. The tractor has an…
A: Compute depreciation expense on the tractor for the first two years as shown below:…
Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machinewas…
A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (120000 - 0) / 10…
Q: pany purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no…
A: Under straight line depreciation method, annual depreciation is based on useful life in years. Book…
Q: 1. On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to…
A: The formula for calculating depreciation by the straight-line method:
Q: Martinez Company constructed a building at a cost of $2,464,000 and occupied it beginning in January…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…
Q: Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in…
A: "Hey, since multiple sub parts are posted, we will answer the first three questions alone. If you…
Q: A company purchased a CNC machine for $40,000. It has a salvage value of $4,000 at the end of its…
A: Ans. The useful number of years of the machine = 10 years Therefore, the straight line depreciation…
Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was…
A: Depreciation: It is a non-cash expense. This is the decrease in the value of a fixed asset…
Q: Standard Company purchased a machine on January 1, 2009 for P500,000. At the time, it was determined…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: The Giovanni Company purchased a tooling machine in 2007 for $120,000. The machine was being…
A: Solution: Initial annual depreciation using SLM = $120,000 / 20 = $6,000 Carrying value of machine…
Q: On January 10, 1997 NXT CO. Company purchased a building by paying $75,000. The building has an…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: DEF manufacturing company, a calendar-year company, purchased a machine for P650,000 on January…
A: Cost of machine = Purchase price + Freight in + Installation cost + Testing cost = P650,000 + 5,000…
Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…
A: As per straight line method, the depreciation is computed by dividing the original cost less salvage…
Q: Amanda Company purchased a computer that cost $11,200. It had an estimated useful life of five years…
A: Answer:- Depreciation meaning:- A reduction in the worth of an asset is generally referred to as…
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- 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.Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.Sand River Sales has a fork truck used in its warehouse operations. The truck had an original useful life of five years. However, after depreciating the asset for three years, the company makes a major repair that extends the life by four years. What is the remaining useful life after the major repair?
- 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.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
- 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?Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
