ramble Corp. purchased a depreciable asset for $698000 on April 1, 2018. The estimated salvage value is $68000, and the estimated useful life is 5 years. The straight-line method is used for epreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold?
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation formula as per straight line method = (Cost- residual value)/useful life
Q: Sunland Company purchased a machine on July 1, 2020, for $970000. The machine has an estimated…
A: The rate of depreciation under 150% declining balance method is calculated by dividing 150 by the…
Q: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…
A: Depreciation expense is an expense which is charged on fixed assets over the years the assets is…
Q: ARON Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8…
A: Depreciation per hour = (Cost of the assets - Salvage value) / Total estimated operating machine…
Q: PIKACHU purchased an equipment for 540,000 on January 1, 2020. The equipment has an estimated…
A: The calculation of depreciable cost has been made as follows: Depreciable cost=Purchase…
Q: On January 2, 2020, VSG purchased a transportation equipment costing P2,400,000. The new asset has…
A: Accumulated depreciation, December 31, 2022 = P2,400,000 x 2/8 = P600,000 Carrying value, December…
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: Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $132,000. The…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: e was sold for P26,000. What should be the loss recognized from the sale of the machine?
A:
Q: On January 1, 2017, RIP Isabel Granada Company purchased a machinery for P600,000, with an estimated…
A: 1. Impairment loss is carrying amount below the recoverable amount. depreciation calculated based…
Q: Crane Company purchased a depreciable asset for $680000 on April 1, 2018. The estimated salvage…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Drago Company purchased equipment on January 1, 2021, at a total invoice cost of $1,200,000. The…
A: working notes: Depreciation = (1,200,000 – 30,000)/5 useful life Total accumulated depreciation (2…
Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…
A: As per IAS 8, Accounting policies,Changes in accounting estimates and errors A change in useful life…
Q: Cellphone Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…
A: Depreciation per year =Cost of the equipment-salvage valueuseful life=3,000,000-06=500,000.…
Q: Coronado Industries purchased a machine on July 1, 2020, for $960000. The machine has an estimated…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: On January 1, 2017, Rabbit Company purchased a machinery for P600,000. The machinery had been…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful…
A:
Q: Mango Co. owns a machine that was bought on January 1, 2017, for P752,000. The machine was…
A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…
Q: Tamarisk Company purchased a machine on January 2, 2020, for $725,400. The machine has an estimated…
A:
Q: Swifty Corporation purchased a machine on July 1, 2020, for $910000. The machine has an estimated…
A: This is the case of 150% declining-balance method in which the depreciation rate is to be computed…
Q: n January 1, 2019, ABC Company acquired a machine for 4,500,000. The machine has a useful life of 10…
A: A corporation can use the revaluation model to carry a fixed asset at its revalued value. Following…
Q: King Company purchased a machine on July 1, 2018 for P600,000. The machine has an estimated useful…
A: Depreciation means the fall in value of assets because of wear and tear , usage , passage of time or…
Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
A: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…
A: Monthly Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: On January 1, 2018, CRIMSON Company purchased machineries for P10,560,000 and depreciated it by the…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: On October 1, 2020, Saria Company purchased equipment for $13,000 with an estimated useful life of 3…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: On April 1, 2018, Mugiwara Co. purchased a building for P100,000,000. The building has an estimated…
A: Depreciation is an expense for a company which they reported under the expense side of income…
Q: Spiderman Company purchased a machine on January 1, 2017 for P3,760,000. The machine was estimated…
A: Total Sum-of-the-years'-digits = 1+2+3+4+5 = 15 years Total sum of life remaining at the end of 2019…
Q: For the year 2020, how much should be recognized as depreciation expense?
A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…
Q: On October 1, 2022, Blossom Company places a new asset into service. The cost of the asset is…
A: The amount of expense to be charged for the year will be calculated on time basis.
Q: Haemul Pajeon Company purchased a machine on January 2, 2018 for P500,000. The machine has an…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%
Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: The Harry Corporation purchased a machine on January 1, 2020. The machine cost 46,000, with an…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On April 1, 2018, Magnum Company purchased a delivery equipment for $88,000, with an expected useful…
A: The depreciation is an expense charged on fixed asset as the reduction in the value of fixed asset…
Q: he 150% declining-balance method. For the year ended December 31, 2020, Sheridan should record…
A: The declining balance method is a method of charging the depreciation in which the higher amount of…
Q: January 1, 2014, Bonita Industries purchased equipment at a cost of $361000. The equipment was…
A: The depreciation expense refers to the reduction in the value of assets due to the use of that asset…
Q: Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage…
A: Solution: Annual depreciation on asset = (Cost - Salvage value) / Useful life = ($726,000 - $72,000)…
Q: On January 1, 2020, Coronado Industries purchased a new machine for $4290000. The new machine has an…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
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: RS Inc. acquired a delivery truck for P2,100,000 on January 1, 2018. The delivery truck has useful…
A: 1. Sum of useful life = 5+4+3+2+1 = 15 2. Calculation of depreciation rate for each year under sum…
Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…
A: At the time of disposal of an asset, the gain or loss on the sale of asset can be computed by…
Q: On January 1, 2015, Jersey Corporation purchased for $800,000, equipment having a useful life of ten…
A: Assets are the resources of the business which it has acquired for business purpose. Assets can be…
Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
A: Under straight line method of recording depreciation, equal amount of depreciation expense is…
Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…
A: Sum of year digit method is a depreciation method where the depreciation for the year is calculated…
Q: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…
A: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…
Q: Marcus purchased a equipment which was an depreciable asset for P38,000 on January 1, 2017. The…
A: Depreciation was used to record value of various machineries after its wear and tear where sum of…
Q: On April 21, 2018, OO YAN! Manufacturing Company bought new equipment for P725, 000. The new…
A: Under the sum of year digits method, depreciation is highest in the initial periods and lower in the…
Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…
A: When an asset is purchased and used in the operation of the business, its value keeps on declining…
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- Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000Working Backward: Depreciation Polk Corp. purchased new store fixtures for $55,000 on January 31, 2014. Polk depreciates assets using the straight-line method and estimated a salvage value for the machine of $5,000. On its December 31, 2016, balance sheet, Polk reported the following: Required What is the yearly amount of depreciation expense for the store fixtures? What is the estimated useful life in years for the store fixtures? Explain your answer.
- Choice Among Depreciation Methods Walnut Ridge Production Inc. purchased a new computerized video editing machine at a cost of $450,000. The System has a residual value of $64,000 and an expected life of 5 years. Required: 1. Compute depreciation expense, accumulated depreciation, and book value for the first 3 years of the machines life using the (a) straight-line method and (b) double-declining-balance method. 2. Which method would produce the largest income in the first, second, and third years of the assets life? 3. CONCEPTUAL CONNECTION Why might the controller of Walnut Ridge Production be interested in the effect of choosing a depreciation method? Evaluate the legitimacy of these interests.Depreciation Methods On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively. Required: Compute depreciation expense for 2019 and 2020 using the (1) straight-line, (2) double-declining-balance, and (3) units-of-production methods of depreciation.Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards-R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: 1. Determine the revised annual depreciation expense for 2019 using the straight-line method. 2. CONCEPTUAL CONNECTION How does the revision in depreciation affect the Blizzards-R-Us financial statements?
- Effect of depreciation on net income Einstein Construction Co. specializes in building replicas of historic houses. Bree Andrus. president of Einstein Construction, is considering the purchase of various items of equipment on July 1. 20Y2. for $300,000. The equipment would have a useful life of five years and no residual value. In the past, all equipment has been leased. For tax purposes, Bee is considenng depreciating the equipment by the straight-line method. She discussed the matter with her CPA and learned that although the straight-line method could be elected, it was to her advantage to use the Modified Accelerated Cost Recovery System (MACRS) for tax purposes. She asked for your advice as to which method to use for tax purposes. What factors would you present for Bree’s consideration in the selection of a depreciation method?Depreciation On July 1, 2016, Dexter Corp. buys a computer system for $260,000 in cash. Assume that the computer is expected to have a four-year life and an estimated salvage value of $20,000 at the end of that time. Required Prepare the journal entry to record the purchase of the computer on July 1, 2016. Compute the depreciable cost of the computer. Using the straight-line method, compute the monthly depreciation. Prepare the adjusting entry to record depreciation at the end of July 2016. Compute the computers carrying value that will be shown on Dexters balance sheet prepared on December 31, 2016.Depreciation Schedules Dunn Corporation acquired a new depreciable asset for $135,000. The asset has a 5-year expected life and a residual value of zero. Required: 1. Prepare a depreciation schedule for all 5 years of the assets expected life using the straight-line depreciation method. 2. Prepare a depreciation schedule for all 5 years of the assets expected life using the double-declining-balance depreciation method. 3. CONCEPTUAL CONNECTION What questions should be asked about this asset to decide which depreciation method to use?
- Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.Disposal of Fixed Asset Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine: The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation. Required: 1. Prepare the journal entry to record depreciation expense for 2019. 2. Compute accumulated depreciation at December 31, 2019. 3. Prepare the journal entry to record the sale of the machine. 4. CONCEPTUAL CONNECTION Explain how the disposal of the fixed asset would affect the 2019 financial statements. Ignore income taxes.Cost of Asset and Depreciation Method Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of 5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations: Required: 1. Compute the depreciation expense for 2019 and 2020. 2. Next Level What is the effect on the financial statements if the company used the straight-line method instead of the 150%-declining-balance method?