51:09okncesHighsmith Rental Company purchased an apartment building early in 2024. There are 20 apartments in the building and each isfurnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. Thefollowing data are available:ApplianceStovesRefrigeratorsDishwashersCost$ 37,00032,00030,000Residual Value$ 4,0003,0002,000Service Life(in Years)In 2027, three new refrigerators costing $3,800 were purchased for cash. In that same year, the old refrigerators, which originally cost$3,700, were sold for $1,300.Required 1 Required 2Required:1. Calculate group depreciation rate, group life, and depreciation for 2024.2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.Complete this question by entering your answers in the tabs below.Group depreciation rateGroup lifeDepreciation for 2024 (Straight Line)654Calculate the group depreciation rate, group life, and depreciation for 2024.Note: Round "Group depreciation rate" and "Group life" answers to 2 decimal places.%years< Required 1Required 2 >k

Group depreciation rate and group life are methods used to depreciate assets collectively rather…

Answered: 1. Calculate the group depreciation…

1. Calculate the group depreciation rate, group life, and depreciation for 2024. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On August 2, 2023, Wendy purchased a new office building for $3,800,000. On October 1, 2023, she began to rent out office space in the building. On July 15, 2027, Wendy sold the office building. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What MACRS convention applies to the new office building? b. What is the life of the asset for MACRS? c. Determine Wendy's cost recovery deduction for 2023 and 2027. 2023: $ 2027: $
For the following questions calculate the depreciation expense as noted in the space provided. Show detail in your answer so that the depreciation for 2019 and 2024 is clearly identified. Show detail in your answer. Rod paid $1,950,000 for a new warehouse on April 14, 2019. He sold the warehouse on September 29, 2024. Determine the cost recovery deduction for 2019 and 2024.
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DO NOT COPY ANOTHER ANSWER THAT'S ALREADY GIVEN. Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000
Prepare the general journal entries for the following transactions. 20-a Jan. 2 Purchased land with a building on it for $750,000. The land is worth $300,000. Paid $150,000 down and signed a mortgage to be paid over 20 years. Dec. 31 Depreciation is computed using the straight-line method. The building has an estimated salvage value of $75,000 and an estimated life of 20 years. 20-b Jul. 1 The building and the land are sold for $825,000 cash. If an amount box does not require an entry, leave it blank. 20-a Page: 1 Date DESCRIPTION POST. REF. DEBIT CREDIT 1 Jan. 2 fill in the blank 37b26efe5005049_2 fill in the blank 37b26efe5005049_3 1 2 fill in the blank 37b26efe5005049_5 fill in the blank 37b26efe5005049_6 2 3 fill in the blank 37b26efe5005049_8 fill in the blank 37b26efe5005049_9 3 4 fill in the blank 37b26efe5005049_11 fill in the blank 37b26efe5005049_12 4 5 Dec. 31 fill in the blank 37b26efe5005049_14 fill in the…
a. Identify the following transactions as either Capital Expenditure or RevenueExpenditure.i). Pay salary and wages for November 2020 amounting to RM6,200.ii). Purchase vehicle for business use amounting to RM145,000.iii). Depreciation expense for financial year ended 2020 amounting to RM21,000.iv). Purchase stationery for office use amounting to RM450.v). Acquire a building amounting to RM520,000.vi). Repair office door amounting to RM800.
Case E Sanders Company purchased the following on January 1, 2019: Office equipment at a cost of $60,000 with an estimated useful life to the company of three years and a residual value of $15,000. The company uses the double-declining-balance method of depreciation for the equipment. Factory equipment at an invoice price of $880,000 plus shipping costs of $20,000. The equipment has an estimated useful life of 100,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. A patent at a cost of $330,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,000 hours in 2019, 9,200 hours in 2020, and…
Makati Inc. acquires a building on February 1, 2020 at a cost of 5,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of 500,000. Question 1. What is the journal entry to record the purchase of building? Question 2. What is the adjusting entry on December 31 assuming the company prepares it's financial statements on this date . Question 3. What is the amount of expense to be recognized for 2020? Question 4. What is the book value of the building as of December 31,2020? Please answer it completely. Don't answer if you don't answer it completely. Thanks.
Picture 1 is all the information, picture 2 is questions need to be answered.
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Can you show me step by step this one too? 13. ABC Inc. purchased a truck on January 1, 2018 for $40,000. The truck had an estimated life of six years and anestimated salvage value of $4,000. ABC uses the straight-line method to depreciate the asset. On July 1, 2020, the truck was sold for $14,000 cash. A. Determine the effect on the accounting equation upon recording the depreciation for 2018. Assets = Liabilities + Stockholders’ Equity Revenues – Expenses =Net Income B. Calculate the gain or loss on the sale of the asset.