The Office building at cost account on 31th December, 20X1. before closing the account is as follows: Office building at cost $ 01.01) Transfer of accumulated 24 01.01) opening balance 24 000 depr. Building 6 000 01.01) Revaluation of office building 4 000 The company's policy is to charge depreciation at 10% per year on a straight-line basis. Calculate net book value of office building before revaluation: Enter the relevant bookkeeping entries to charge the annual depreciation: DEBIT CREDIT AmouAt Calculate the net book value of the office building on 31st December, 20X1? How much would be the net book value of the office building on 31st December, 20X1 if no revaluation is taken place?

The Office building at cost account on 31th December, 20X1. before closing the account is as follows: Office building at cost $ 01.01) Transfer of accumulated 24 01.01) opening balance 24 000 depr. Building 6 000 01.01) Revaluation of office building 4 000 The company's policy is to charge depreciation at 10% per year on a straight-line basis. Calculate net book value of office building before revaluation: Enter the relevant bookkeeping entries to charge the annual depreciation: DEBIT CREDIT AmouAt Calculate the net book value of the office building on 31st December, 20X1? How much would be the net book value of the office building on 31st December, 20X1 if no revaluation is taken place?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 10SPB

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
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