Part a.Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimateduseful life of the equipment is 5 years, the salvage value is $10,000, and the company uses thestraight-line method to depreciate fixed assets.Requlred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrappedafter flve years?Part b.On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated thatthe truck would be driven 100,000 miles during the next 5 years, at which time it would havea salvage value of $3,000. During the first and second years, the truck was driven 22,000 and18,000 miles, respectively.Requlred: How much Is accumulated depreclation usIng the unlts of output (mllesdriven) method at the end of year 2?Part c.Zack Co. incurred the following costs related to equipment during November 2017.1. Purchased equipment with a list price of $90,000 for $87,300.2. Had the equipment installed and paid the installer $2,000.3. Paid the freight bill for delivery of the equipment, S1,000.4. Advertised a product that will be produced by the new equipment, $3,400.5. Paid sales taxes of $3,800 on the purchase of the new equipment.Requlred: Calculate the capltallzed cost of the equlpm ent.Part d.Rio Grande Company purchased a delivery truck on January 1, 2017 for $75,000. Theestimated useful life of the delivery truck is 5 years, the salvage value is $10,000, and thecompany uses the straight- line method to depreciate fixed assets.Requlred: Record the Journal entry that Rlo Grande would make at the end of the flfthyear If the dellvery truck was sold for $6,800.

Name: Part a.Rio Grande Company purchased equipment on January 1, 2017 for
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Description: Part a.Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimateduseful life of the equipment is 5 years, the salvage value is $10,000, and the company uses thestraight-line method to depreciate fixed assets.Requlred: Prepa

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Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. RequIred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years?

Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. RequIred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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