Sarasota Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price $93,000 Credit terms 2/10, n/30 Freight-in costs $900 Preparation and installation costs $4,200 Labour costs during regular production operations $11,500 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Sarasota intends to use the machine for only eight years and expects to then be able to sell it for $1,800. The invoice for Machine no. 201 was paid on May 5, 2020. Sarasota has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Sarasota follows IFRS for financial statement purposes.

Sarasota Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price $93,000 Credit terms 2/10, n/30 Freight-in costs $900 Preparation and installation costs $4,200 Labour costs during regular production operations $11,500 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Sarasota intends to use the machine for only eight years and expects to then be able to sell it for $1,800. The invoice for Machine no. 201 was paid on May 5, 2020. Sarasota has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Sarasota follows IFRS for financial statement purposes.

Name: %24%24%24%24Calculate the depreciation expense for the years indicate
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Description: %24%24%24%24Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate ceround final answers to 0 decimal places, e.g. 5,275.)1. Straight-line method for the fiscal years ended December 31, 202

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 9.17EX: Entries for sale of fixed asset Equipment acquired on January 8 at a cost of 168,000 has an...

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Entries for sale of fixed asset Equipment acquired on January 8 at a cost of 168,000 has an estimated useful life of 18 years, has an estimated residual value of 15,000, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of d1e fourd1 year? B. Assuming that the equipment was sold on April 1 of the fifth year for 125,000, Journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment.
Question 8 Link Co. purchased machinery that cost $3,000,000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a nine-year life and a $200,000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations.Link's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of $2,333,333. $2,066,667. $0. $2,377,778.
Exercise 10-24 On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows. Machine $1,872,000 Less: Accumulated depreciation 518,400 Book value $1,353,600 Depreciation is computed at $86,400 per year on a straight-line basis.Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If…
Intermediate Accounting ll ch 16 On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment’s cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $45 million. At December 31, 2024, the book value of the equipment was $42 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $72 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 20%. What is Ameen’s 2024 net income?
Exercise 7-48Depreciation Methods Berkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year. Required: 1. Compute depreciation expense for 2019 and 2020 using the: a. Straight-line method. Depreciation expense $fill in the blank 1 per year b. Double-declining-balance method. Depreciation Expense 2019 $fill in the blank 2 2020 $fill in the blank 3 c. Units-of-production method. (Do not round intermediate calculations.) Depreciation Expense 2019 $fill in the blank 4 2020 $fill in the blank 5 2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? 2019 2020 a. Straight-line method $fill in the blank 6 $fill in the blank 7 b. Double-declining-balance method $fill in the blank 8 $fill in the blank 9 c.…
Company B's December 31 Year-End Balance Sheet reveals the following: • December 31, 2020 net PPE of $865 • December 31, 2020 Accumulated Depreciation of $250 • December 31, 2021 net PPE of $770 • December 31, 2021 Accumulated Depreciation of $230 • Annual 2021 Depreciation Expense was $100 • During 2021, PPE was purchased for $560; all PPE purchases are made in cash. • During 2021, the gain of the sale of PPE was $20 What is the journal entry Company B recorded to recognize 2021 depreciation expense? Dr. Accumulated Depreciation $20 Cr. Depreciation Expense $20 Dr. Depreciation Expense $100 Cr. Accumulated Depreciation $100 Dr. Depreciation Expense $20 Cr. Accumulated Depreciation $20 Dr. Depreciation Expense $100 Cr. PPE $100
31-Dec-2020 31-Dec-2019 $ $ Equipment 177,000 100,000 Accumulated Depreciation $76,000 $60,000 A equipment with a cost of $20,000 was disposed during the year with accumulated depreciation of $15000 and gain on disposal of $3,000. No other disposal or retirement of Equipment during the year ended 31 December 2020. The total depreiciation expense for year ended 31 December 2020 is $ Additions of Equipment (Purchase of Equipment) for the year ended 31 December 2020 is $ Sales Proceeds on disposal of equipment is $
Exercise 7-48Depreciation Methods Berkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year. Required: 1. Compute depreciation expense for 2019 and 2020 using the: a. Straight-line method. Depreciation expense $ per year b. Double-declining-balance method. Depreciation Expense 2019 $ 2020 $ c. Units-of-production method. (Do not round intermediate calculations.) Depreciation Expense 2019 $ 2020 $ 2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? 2019 2020 a. Straight-line method $ $ b. Double-declining-balance method $ $ c. Units-of-production method $ $
B. Calculate the depreciation charge for 2024 under units of production method. (Round rate per unit to 2 decimal places, e.g. 5.27.) Depreciation per output unit /output unit Depreciation charge for 2024 Calculate the depreciation charge for 2024 under working hours method. Depreciation per hour Depreciation charge for 2024 C. Calculate the depreciation charge for 2024 under declining-balance, using a 20% rate. Depreciation charge for 2024
Answer No. 24 Using the Percentage of completion Method, the realized gross profit or loss for the year 2021 is: a. 822,500 b. -35,000 c. 840,000 d. -122,500 No. 16 (the other picture: Roman Construction Company) The billings in excess of cost or the cost in excess of billings to be reported in the balance sheet as od December 31,2019 a. 20,000 excess of cost over billings b. 20,000 excess of billings over cost c. 900,000 excess of cost over billings d. 900,000 excess of billings over cost Provide a complete solution. Thank You
Question 5The following balances were extracted from the books of Billion Precision for the yearended 31 December 2020.Dr (RM) Cr (RM)Land 500,000Building 200,000Motor vehicles 120,000Plant and machinery 70,000Profit b/f as at 01.01.2020 237,650Capital 438,000Acc depreciation as at 1.1.2020 :-Building 60,000-Motor Vehicles 69,250-Plant & Machinery 40,000Returns 3,600 4,100Revenue 800,000Purchases 400,000Discounts 5,0006Carriage inwards 7,700Opening inventory 52,000Provision for bad debts 2,000Trade receivables / Trade payable 66,000 43,200Advertising 18,000Staff training cost 4,000Bad debts 12,500Motor expenses 27,000Rental 90,000Bank 7,600Wages and salaries 126,0001,701,800 1,701,800Additional information:i.i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on cost.-Vehicles 25% on cost.iii. The closing inventories is valued at RM57,000.Required:a. Prepare the Statement of…
question 4 ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is $80,000 and its expected life is eight years. Estimated total units of activity is 200,000 hours. Instructions: Calculate the depreciation expense (to the nearest dollar) by each of the following methods, SHOWING ALL CALCULATIONS. (a) Straight-line for 2021, 2022 (b) Double-declining balance for 2021, 2022 (c) Sum-of-the-years'-digits for 2021, 2022 (d) Units of activity method, assuming 15,000 hours in 2021 and 29,000 hours in 2022 (e) Record the entry for depreciation in 2021, assuming the double declining balance method is used (f) Calculate the book value of the asset at 12/31/22, assuming the straight line method is used