Required informationPA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods(LO 9-2, LO 9-3)[The following information applies to the questions displayed below.)At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately wereoverhauled, were instaled, and started operating. Because the machines were different, each was recorded separately inthe accounts. Details for Machine A are provided below.Cost of the assetInstallation costsRenovation costs prior to useRepairs after production began$9,100810630530PA9-1 (Algo) Part 22. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual valueYear 2 straight-line depreciation expense

Fixed asset : Assets which provide long term benefits are called fixed assets. These assets are…

Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] (The following information applies to the questions displayed below) At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were overhauled, were instaled, and started operating. Because the machines were different, cach was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs $9,100 810 Renovation costs prior to use Repairs after production began 630 530 PA9-1 (Algo) Part 2 E. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value

Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] (The following information applies to the questions displayed below) At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were overhauled, were instaled, and started operating. Because the machines were different, cach was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs $9,100 810 Renovation costs prior to use Repairs after production began 630 530 PA9-1 (Algo) Part 2 E. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.7AMCP

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[The following information applies to the questions displayed below.] Dog Co. acquired and placed in service the following assets during the year: Date Cost Asset Placed in Service Basis Computer equipment 3/9 $ 15,800 Furniture 5/23 23,200 Commercial building 10/19 347,000 Assuming Dog Co. does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Dog Co.'s year 3 cost recovery for each asset if Dog Co. sells all of these assets on 4/16 of year 3?
During the current accounting period, Jack Ltd considered the recognition of the following costs as intangible assets. GHS 40,000 spent on evaluating research findings GHS 60,000 spent on acquiring a brand name from a competitor GHS 50,000 spent on acquiring the legal rights to a production process, without which Jack Ltd’s business cannot function In accordance with IAS 38 Intangible Assets, what is the maximum amount that Jack Ltd could recognize as intangible assets?
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On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightlinemethod using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RASTCo. determined that the machine had a useful life of six years from the date of acquisition and will have asalvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. Theaccumulated depreciation for this machine should have a balance at December 31, 20X9 of:a) $1,095,000.b) $1,155,000.c) $1,200,000.d) $1,320,000
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[The following information applies to the questions displayed below.] Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 72,000 Computer equipment February 3 11,500 Used delivery truck* August 17 24,500 Furniture April 22 152,500 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen’s property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49…
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PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6] The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020 Paid $88,000 cash to purchase storage shed components. January 3, 2020 Paid $4,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,000. April 1, 2020 Paid $31,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $5,000. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $300 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid…