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Exercise 11-24 (Algo) Change in principle; change in depreciation methods [LO11-2, 11-6] Alteran Corporation purchased office equipment for $2.2 million at the beginning of 2022. The equipment is being depreciated over a 10-year life using the double-declining-balance method. The residual value is expected to be $700,000. At the beginning of 2024 (two years later), Alteran decided to change to the straight-line depreciation method for this equipment. Required: Prepare the journal entry to record depreciation for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. View transaction list View journal entry worksheet Event 1 No 1 General Journal Depreciation expense Accumulated depreciation Debit Credit Tecnal

Problem 11-11 (Algo) Error correction; change in depreciation method [LO11-2, 11-6, 11-7] Collins Corporation purchased office equipment at the beginning of 2022 and capitalized a cost of $2,130,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2022 and 2023. In 2024, after the 2023 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company's controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment. Required: 1. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2024. 2.…

Exercise 11-9 (Static) IFRS; revaluation of equipment; depreciation; partial periods [LO11-10] [The following information applies to the questions displayed below.] Exercise 11-9 (Static) Part 1 Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower chooses to revalue the equipment to its fair value of $220,000. Required: 1. Calculate depreciation for 2024. 2-a. Calculate the revaluation of the equipment. 2-b. Prepare the journal entry to record the revaluation of the equipment. 3. Calculate depreciation for 2025. Complete this question by entering your answers in the tabs below. No 1 Req 1 Reg 2A Req 2B Prepare the journal entry to record the revaluation of the equipment. Note: If no entry is…

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D Problem 1: Depreciation & Impairment (15 pts) Flagg Corp purchase and placed into service $3.3 million worth of virology testing equipment on March 31, 2021. The equipment is expected to last 6 years and/or 2 million batches, and have a salvage value of $600,000. Calculate the depreciation expense for 2021, 2022, and 2023 for the following methods: 1.1: (2 pts) Straight-line. 1.2: (3 pts) Sum of the year's digits. 1.3: (3 pts) Triple times declining balance. 1.4: (3 pts) Units of production (assume 650k, 850k and 600k batches in years 2021, 2022, and 2023). (go out to six decimals on the cost per unit) 1.5: (4 pts) Assume Flagg Corp used the straight-line method. On January 1, 2024, Flagg Corp determined the equipment would generated net free cash flows (undiscounted) of $350,000, $300,000 and $250,000 in each of the next 3 years and nothing thereafter. Further, Flagg Corp uses an internal interest rate of 19%. If necessary, record the impairment journal entry as of January 1. 2024.

View Policies Current Attempt in Progress Ivanhoe Company purchased a new machine on October 1, 2022, at a cost of $68,220. The company estimated that the machine has a salvage value of $6,540. The machine is expected to be used for 70,400 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, eg 5,275.25) 2022 2023 The depreciation expense under the straight-line method $ eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later

Subject: accounting

3 Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $170,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Double-Declining-Balance Method X X % % = Depreciation Expense =

QUESTION 12 Kansas Enterprises purchased equipment for $79,500 on January 1, 2024. The equipment is expected to have a five-year service life, with a residual value of $7,950 at the end of five years. Using the double-declining balance method, depreciation expense for 2025 would be: (Do not round your intermediate calculations) O $19,080. O $28,620. O $31,800. $17,172. O None of the above

S10-6 Calculating depreciation by three methods–second year At the beginning of 2017, JetQuick Airlines purchased a used Boeing jet at a cost of $46 million. JetQuick expects the plane to remain useful for eight years (5 million kilometres) and to have a residual value of $6 million. JetQuick expects the plane to be flown for 1.3 million kilometres the first year and 1 million kilometres the second year. Requirements 1 Calculate second-year (2018) depreciation on the plane using the following methods: a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Calculate the balance in Accumulated depreciation at the end of the second year using the straight-line method of depreciation.

Exercise 11-11 (Algo) Disposal of property, plant, and equipment; partial periods (LO11-2] On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $219,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $27,000. On March 1, 2021, the truck was sold for $88,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2021. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $125,000, prepare the journal entry to record the sale. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to update depreciation in 2021 and record the sale of the truck. (If no entry is required…

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Exercise 11-11 (Algo) Disposal of property, plant, and equipment; partial periods [LO11-2] On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $131,600. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $26,000. On March 1, 2021, the truck was sold for $52,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2021. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $83,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Prepare the journal entries to update depreciation in 2021 and record the sale of the truck. (If no entry is required for a transaction/event, select "No…

Q-5 Cactus Inc. purchased a machine on January 1, 2022, at a cost of $60,000. The machine is expected to have an estimated residual value of $5,000 at the end of its five-year useful life. The company capitalized the machine and depreciated it in 2022 using the double-declining-balance method of depreciation. The company has a policy of using the straight-line method to depreciate equipment, as this method best reflects the benefits to the company over the life of its machinery. However, the company accountant neglected to follow company policy when he used the double-declining-balance method. Net income for the year ended December 31, 2022, was $53,000 as a result of depreciating the machine incorrectly. Cactus has not closed its books for 2022 yet. Cactus uses IFRS to prepare its financial statements. Required Using the method of depreciation that the company normally follows, prepare the correcting entry and determine the corrected net income. Assume the books of account have not…

Required information Exercise 11-3 (Algo) Depreciation methods partial periods (LO 11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260.000 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

Financial accounting question

3 Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet:  Equipment                                                      P500,000  Accumulated depreciation—equipment      P135,000     In a footnote, Jaen indicates that it uses straight-line depreciation over 10 years and estimates salvage value as 10% of cost.  What is the average age of the equipment owned by Jaen?  Group of answer choices  7.3 years  3 years  7 years  2.7 years