The engine of a truck burned out and needed to be replaced two years after it was originally purchased. The original cost of the engine was $7,000 with a useful life of five years and salvage value of $1,000.  The journal entry to record the disposal of the engine includes A credit to Cash for $7,000 A credit to Equipment (Truck) for $4,600 A credit to Equipment (Truck) for $7,000 A debit to Accumulated Depreciation for $1,000

Q: A hot-and-cold forming machine was purchased at a cost of $65,000. It has an estimated useful life…

A: GIVEN, COST = $65000 SALVAGE VALUE = $8000 USEFUL LIFE = 6 YEARS

Q: A company purchased a new machine on January 1, 2014. The supplier, "Forever supply" was paid $2,000…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Under Units of production method : Depreciation =(Cost of asset - salvage value )×Actual Units…

Q: A small delivery truck was purchased on January 1 at A cost of $25,000 it has an estimated useful…

A: Depreciation is considered a reduction in the value of assets due to use of that asset. We can…

Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…

A: Depreciation (double-declining-balance) = Original cost * Double Declining Depreciation rate…

Q: Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000.…

A: SOLUTION- DEPRECIATION REFERS TO THE AMOUNT OF PERMANENT LOSS IN THE VALUE OF AN ASSET. IT IS…

Q: Equipment was purchased for $75,000. Freight charges amounted to $3,500 and there was a cost of…

A: Initially Property Plant & Equipment are recorded at cost , which includes the purchase price of…

Q: A company had a building destroyed by fire. The building originally cost $650,000 and its…

A: The original cost of building, accumulated depreciation is given. The building got destroyed by fire…

Q: A plant asset was purchased on January 1 for $20,000 with an estimated salvage value of $4000 at the…

A: DEPRECIATION UNDER STRAIGHT LINE METHOD = (COST OF ASSET - SALVAGE VALUE) / USEFUL LIFE OF ASSET…

Q: On January 1, 1978, the purchasing engineer of JJ Hernandez Cement Co. purchased a new machine at a…

A: Depreciation is the fall in the value of the fixed asset due to normal wear tear, the passage of…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is…

A: Calculate the year 1 depreciation as follows: Year 1 depreciation = 2*(Book value of asset /5) Year…

Q: Having been affected by Typhoon Odette, a man bought a generator unit to power his building used for…

A: Formulas :- Original cost = cost of unit + Installation cost + Shipping cost Rate of depreciation…

Q: Mason Delivery Services purchased a truck with a cost of $40,000, salvage value of $5,000 and useful…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 1, 1978, the purchasing engineer of a cement company purchased a new machine at a cost of…

A: Depreciation: It is the gradual decrease in the value of the asset due to its normal usage in the…

Q: Refer to Fabian Woodworks. What amount will be reported as depreciation expense over the 5-year life…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Rooney & Burke, Inc. is disposing of a factory machine it has had for 3 years, 3 months. The cost of…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an…

A: The computation is as follows: Hence, option A) $5,000 is the correct answer.

Q: A computer was purchased on January 1 at a cost of $12,500. It has an estimated useful life of five…

A: Double declining rate = 1/useful*2 Depreciation expense = Beginning book value*Double declining rate…

Q: On January 1, 1978, the purchasing engineer of Itadori Co. purchased a new hydraulic machine at a…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On April 1, 2005, a company disposed of equipment for $1,200 cash that had cost $39,500 on January…

A: Accumulated depreciation at a particular date indicates the value of asset used up till date. The…

Q: machine has been purchased at 3,00,000 with estimated salvage value of 30,000 at the end of its…

A: Straight method of depreciation (Cost of asset - salvage value) / useful life  Cost of machine is…

Q: A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the…

A: Following journal entry will be passed to record insurance proceeds and the disposition of the truck…

Q: Wickland Company installs a manufacturing machine in its production facility at the beginning of the…

A: As per the straight-line depreciation method, equal depreciation is charged each year. in simple…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation per unit (Units of production method) =(cost of Asset - salvage value )  / Estimated…

Q: The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the…

A: Value of asset=Total Depreciation+Residual value=$2,080,000+$50,000=$2,130,000

Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,180,…

A: Answer -  As the Expenditure incurred on building enhanced the life of the assets  given it has to…

Q: Sellem, Inc. is disposing of office furniture it has had for 2 ½ years. The cost of the furniture…

A: Refer step1 & step2 for complete understanding

Q: Rooney & Burke, Inc. is disposing of a factory machine it has had for 3 years, 3 months. The…

A: Given: Cost of the machine was    $50,000 Estimated Salvage Value     $5,000 Life of the Asset…

Q: A truck was acquired on July 1, 2012, at a cost of $216,000. The truck had a six-year useful life…

A: The depreciation is an expense charged to an asset as there reduction in the value of the assets…

Q: On January​ 1, 2018​, Absolutely Bar​ & Grill purchased a​ building, paying $57,000 cash and signing…

A:

Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…

A: Under Straight-line Depreciation Method :  Yearly Depreciation expense = ( Cost of asset - Salvage…

Q: Citano Company has a used executive charter plane that originally cost $750,000. Straight-line…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: On January 1, 20x2, Kent Corporation purchased a machine for $50,000. Kent paid shopping expenses of…

A: In the case of fixed assets, only such expenses are capitalized that are necessary to bring the…

Q: truck costing $20,000 was purchased on January 1, 2004. It was depreciated using the straight-line…

A: Answer -    Straight Line Depreciation Uniform depreciation of an asset's value Home › Resources ›…

Q: The Vermont Construction Company purchased a hauling truck on January 1, 2009 at a costof $35,000.…

A: Depreciation: Depreciation is defined as a reduction in the value of assets that occurs over time as…

Q: A company acquired equipment that cost $12,000 by paying $1,000 cash and obtaining a loan of…

A: Annual Depreciation = Total Cost of Asset - Salvage ValueUseful life

Q: Equipment with a cost of $662000 has an estimated salvage value of $50000 and an estimated life of 4…

A: Depreciation is the method of allocating the cost of a asset over its useful life. Depreciation…

Q: On January 1, 2018, a company purchased a delivery truck for $45,000 cash. The truck had an…

A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the…

Q: On January 1, Year 1, Missouri Company purchased a truck that cost $29,000. The truck had an…

A: Solution: Depreciation rate - SLM = 1/10 = 10% Depreciation rate - DDB = 10%*2 = 20%

Q: On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $45,000. The cab has an…

A: Depreciation per unit (Units of production method) =(cost of Asset - salvage value )  / Estimated…

Q: A tractor that had an original cost of $30,000 with an estimated useful life of 5 years and a…

A: Straight line method of depreciation is the method of depreciation where depreciation is charged on…

Q: Abbott Landscaping purchased a tractor at a cost of $25,000 and sold it three years later for…

A: Working: Purchase price of tractor: $25,000 Scrap Value of tractor: $3,500 Sale price of tractor:…

Q: Rooney & Burke, Inc. is disposing of a factory machine it has had for 3 years, 3 months. The cost of…

A: 1. Calculation of yearly depreciation expense under straight-line depreciation method :…

Q: The original equipment was purchased 3 years ago for $200,000 and was depreciating using the 5 Year…

A: In the given question, it has been asked to compute the corrected NPV i.e. consider the cashflows…

Q: At the beginning of the current year, a company purchased and placed in service a machine with a…

A: Depreciation is an expense that is caused due to reduce in value of an asset every year. It is…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation: It is an non-cash expense which is charged on fixed assets of the organisation.

Q: The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is…

A:

Q: Canyon Company has a used delivery truck that originally cost $24,500. Straight-line depreciation on…

A: Depreciation Expenses = (Cost of Truck - Salvage Value)/ Life of truck…

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…