was purchased for $142,000.00 on January 1 estimated to have a useful life of 9 years witl 00.00. At the beginning of the third year, it wa ining useful life of the asset was only 4 years $2,000.00. Calculate the third-year depreciati ed amounts and straight line method.

was purchased for $142,000.00 on January 1 estimated to have a useful life of 9 years witl 00.00. At the beginning of the third year, it wa ining useful life of the asset was only 4 years $2,000.00. Calculate the third-year depreciati ed amounts and straight line method.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...

See similar textbooks

Related questions

Q: An asset was purchased for $110,000 on January 1, Year 1 and originally estimated to have a useful…

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

Q: On June 1, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of…

A: Compute the monthly depreciation: Depreciable cost of the equipment is $90,000 The useful life of…

Q: The Company acquireda machine on January 1, Year 1. The machine cost $500,000 and had an estimated…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Methods of depreciation: Straight-line method Double declining method Sum of years digit method…

Q: On January 1, 20X4, XYZ Company purchased a truck for $120,000. The truck is expected to have an…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On June 1, Michael Company purchased equipment at a cost of $120,000 that has a depreciable cost of…

A: Depreciation refers to the reduction in the book value of the asset due to obsolesce, use, wear, and…

Q: An equipment was purchased on January 1,2018 for P4,000,000. The equipement has an estimated useful…

A: Depreciation is an expense for the firm against the loss in the value of asset over the period of…

Q: Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: At the beginning of the fiscal year, G&J Company acquired new equipmentat a cost of $100,000.…

Q: An asset was purchased for $101,000 on January 1, Year 1 and originally estimated to have a useful…

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

Q: Vaughn Company purchases equipment on January 1, Year 1, at a cost of $558,000. The asset is…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful…

A: Depreciation is a method of distributing the cost of a physical or physical object over its useful…

Q: Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Lacey Company purchased a depreciable asset for $440,000. The estimated salvage value is $20,000,…

A: Depreciation is the decrease in value of assets due to its obsolete condition ,wear and tear…

Q: An asset was purchased for $124,000 on January 1, Year 1 and was originally estimated to have a…

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

Q: On January 1, 20x1, DOC WILLIE Company acquired equipment from Catanduanes Factory Supplies with an…

A: Note: As per the norms of Bartleby, in case of many independent questions, 1 question can be…

Q: An equipment was purchased for $30,000. It has a useful life of 5 years, and a residual value of…

A: Depreciation refers to the noncash expense which is levied on fixed assets due to wear and tear…

Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…

A: The depreciation expense is incurred on fixed assets as reduction in the value of fixed assets with…

Q: what will the recorded depreciation for the current year be? $1,250. $1,667. $2,500. $5,000.

A: Given is: Original Cost of Asset = $10000 Useful life = 4 years Residual Value = $0

Q: Determine the depreciation charge and book value at the end of each year using (i)…

A: Sum of year digit method: In this method asset's expected useful life is considered for the…

Q: On the first day of its current fiscal year, Lupao Corporation purchased equipment costing P400,000…

A: Depreciation rate = P160,000 / P400,000 = 40%

Q: Beck man Enterprise purchased a depreciable asset on October 1, Year 1 at the cost of $152,000. The…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: n September 30, 2021, Shamille Company purchased machinery for P7,600,000. Residual value was…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: Cutter Enterprises purchased equipment for $72,000 on January 1, 2011. The equipment is expected to…

A: Double declining depreciation rate = 2/useful life

Q: An asset was purchased for $138,000.00 on January 1, Year 1 and originally estimated to have a…

Q: Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a…

A: Depreciation represents the fall in the historical cost of the fixed assets because of estimated…

Q: An asset was purchased for $143,000 on January 1, Year 1 and originally estimated to have a useful…

A: Ans. Depreciation will be calculated on the basis of useful number of years and residual value. If…

Q: Oriole Company purchases equipment on January 1, Year 1, at a cost of $588,000. The asset is…

A: Formula: Straight line depreciation expense=Cost-Salvage valueService life

Q: An asset is purchased on January 1 at a cost of $25,000. It is expected to be used for four years…

Q: Thornton Industries purchased a machine on July 1for $45,000 and is depreciating it with the…

Q: An asset was purchased for $103,000 on January 1, Year 1 and originally estimated to have a useful…

A: Depreciation is a non-cash expense which is recorded to report the regular wear and tear of an…

Q: An asset was purchased for $126,000.00 on January 1, Year 1 and originally estimated to have a…

A: Depreciation ( Straight Line Method) = Total Cost of Assets - Salvage Value / No. Of useful life

Q: Company A bought a building for OMR 36,500, which has the expected useful life of four years and a…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: Perdue Company purchased equipment on April 1 for $69,660. The equipment was expected to have a…

A: Double-declining balance method=1Useful Life×2=13×2=0.6666 or 66.6667%

Q: On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment…

A: solution working note annual depreciation under SLM = cost – residual value / life…

Q: Machinery was purchased on January 1 for $51,000. The machinery has an estimated life of 7 years…

A: Depreciation: Depreciation Cost is the cost that is allocated over its life and it is charged as an…

Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…

Q: Peavey Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be…

A: given that, Asset purchased as on 1 April cost of the asset = $31000 method of depreciation = SLM…

Q: Concord Corporation purchased a piece of equipment for $85,200. It estimated an 5-year life and…

A: Solution: Accumulated depreciation upto 3 years = (85200-2200)*3/5 = $49,800 Book value at the…

Q: On January 1, 20X4, XYZ Company purchased a truck for $120,000. The truck is expected to have an…

A: Depreciable cost=Purchase price-Salvage value=$120,000-$20,000=$100,000

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: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $164,0000. The…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Roma Inc purchased an asset worth $500,000. The useful life of the assetwill be 8 years and it was…

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

Q: An asset was purchased for $115,000 on January 1, Year 1 and originally estimated to have a useful…

A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the…

Q: A machine was purchased for $68,000. It has a useful life of 5 years and a residual value of $8,000.…

A: Annual depreciation (Straightline) = (Original cost - Residual value) / Useful life

Question

was purchased for $142,000.00 on January 1
estimated to have a useful life of 9 years witl
00.00. At the beginning of the third year, it wa
ining useful life of the asset was only 4 years
$2,000.00. Calculate the third-year depreciati
ed amounts and straight line method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
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
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The estimated residual value is 25,000. Susquehanna estimates that the asset will be used for 10 years and uses straight-line depreciation. Calculate the depreciation expense per year.
Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
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. $134,000
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.