1)
Introduction:
The depreciation expense for the years 2021 and 2022
2)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense for the years 2021 and 2022
3)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense for the years 2021 and 2022
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INTERMEDIATE ACCT CONNECT ACCESS
- The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20. May 18 June 23 A building that cost $198,000 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,650 and was permitted to keep all materials salvaged. Machinery that was purchased in 2013 for $24,000 is sold for $4,350 cash, fo.b. purchaser's plant. Freight of $450 is paid on the sale of this machinery. A gear breaks on a machine that cost $13,500 in 2012. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the…arrow_forwardThe following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $155,760 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $6,018 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $18,880 is sold for $3,422 cash, fo.b. purchaser's plant. Freight of $354 is paid on the sale of this machinery. A gear breaks on a machine that cost $10,620 in 2017. The gear is replaced at a cost of $2,360. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine…arrow_forwardThe following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $137,280 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,304 and was permitted to keep all materials salvaged. Date Machinery that was purchased in 2018 for $16,640 is sold for $3,016 cash, f.o.b. purchaser's plant. Freight of $312 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,360 in 2017. The gear is replaced at a cost of $2,080. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the…arrow_forward
- The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $139,920 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,406 and was permitted to keep all materials salvaged. Date Machinery that was purchased in 2018 for $16,960 is sold for $3,074 cash, f.o.b. purchaser's plant. Freight of $318 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,540 in 2017. The gear is replaced at a cost of $2,120. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the…arrow_forwardUse the sum-of-the-years'-digits depreciation method to make a depreciation schedule (first two years) for a forklift that cost $31,000, has an expected useful life of ten years, and has a residual value of $2,600. Complete the following table for two years. Enter the depreciation rate as a fraction. Enter annual depreciation, accumulated depreciation, and end-of-year book value as decimals rounded to the nearest cent. Year Depreciation rate Annual depreciation Accumulated depreciation End-of-year book value 1 enter your response here $enter your response here $enter your response here $enter your response here Part 2 2 enter your response here $enter your response here $enter your response here $enter your response herearrow_forwardOn October 1, 2021, the Allegheny Corporation purchased equipment for $123,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 220,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Double-declining-balance. Double-Declining-Balance Method Choose Numerator: x Choose Denominator: x Fraction of = Depreciation Expense Formula Beginning Book Value x Double the Straight-line Rate x Fraction of Year = Depreciation Amount for 2021 $ _________________ x __________________ % x _____________ = _________ Amount for 2022 $_________________ x…arrow_forward
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