2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated that the machine has a residual value of $18,000. The machine is expected to be used for 20,000 working hours during its 5-year life. Calculate the depreciation expense under the straight-line method for 2016 and 2017, assuming a 31 December year-end. 中 2016

2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated that the machine has a residual value of $18,000. The machine is expected to be used for 20,000 working hours during its 5-year life. Calculate the depreciation expense under the straight-line method for 2016 and 2017, assuming a 31 December year-end. 中 2016

Name: 2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $1
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. Theentity estimated that the machine has a residual value of $18,000. The machine isexpected to be used for 20,000 working hours during its 5-year life.Calculate the deprec

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

b) Presented below are selected transactions for Solidago Berhad for 2021. Received RM3,000 scrap value on retirement of machinery that was purchased on January 1, 2010. The machine cost RM90,000 on that date, and had a useful life of 10 years with no residual value. Jan 1 April 30 Sold a machine for RM31,000 that was purchased on January 1, 2018. The machine cost RM90,000, and had a useful life of 5 years with no residual value. Discarded a business automobile that was purchased on April 1, 2017. The car cost RM42,000 and was depreciated on a 5-year useful life with a residual value of RM2,000. Dec 31 Required: Journalize all entries required as a result of the above transactions. Solidago Berhad uses the straight-line method of depreciation and has recorded depreciation through December 31 2020
Muscat chocolates Company purchases equipment on January 1, 2017, at a cost of OMR 100000. The asset is expected to have a service life of 4 years and a residual value of OMR 20000. Instructions: (a) Calculate the annual rate of depreciation. Amount of depreciation for each from 2017 to 2019 using the straight-line depreciation method. (b) Calculate the amount of depreciation for each from 2017 to 2019 using the reducing balance method. (c) What would be the difference in the depreciation expense for the year ending 31st December 2019 based on using either the straight-line method or the reducing-balance method?
Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,600 units in 2021 and 2,050 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.) 2021 2022 Depreciation Expense
1. On April 22, 2023, Sunlight Enterprises purchased equipment for $134,400. The company expects to use the equipment for 11,500 working hours during its four-year life and that it will have a residual value of $12,500. Sunlight has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,700 hours in 2023; 2,600 hours in 2024; 3,500 hours in 2025; 3,000 hours in 2026; and 900 hours in 2027. Please explain & show steps for each. a) Complete a depreciation schedule for the life of the asset under each of the following methods: (straight-line,double diminishing-balance assuming a rate of 50%, and units-of-production.) b) Which method results in the lowest profit over the life of the asset? c) Which method results in the least cash used for depreciation over the life of the asset? Calculate partial-year depreciation using different methods.
Situation 1: Ducharme Corporation purchased electrical equipment at a cost of $62,000 on June 2, 2017. From 2017 through 2020, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $12,000 residual value. After more experience and before recording 2021's depreciation, Ducharme revised its estimate of the machine's useful life downward from a total of 10 years to 8 years, and revised the estimated residual value to $10,000. On April 29, 2022, after recording part of a year's depreciation for 2022, the company traded in the equipment on a newer model, and received a $20,000 trade-in allowance, even though the equipment's fair value was only $14,000. The new asset had a list price of $76,500 and the supplier accepted $56,500 cash for the balance. The new equipment was depreciated on a straight-line basis, assuming a seven-year useful life and a $6,500 residual value. Required #1: 1. Journal Entry on June 02, 2017. 2.…
E10-6 Rottino Company purchased a new machine on October 1, 2017, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2017. (b) Units-of-activity for 2017, assuming machine usage was 1,700 hours. (c) Declining-balance using double the straight-line rate for 2017 and 2018.
Dd.62.
24 )
On August 1, 2017, Haima Company places a new asset into service. The cost of the asset is OMR 160,000 with an estimated 5-year life and OMR 40,000 residual value at the end of its useful life. What is the depreciation expense for 2017 if Haima Company uses the straight-line method of depreciation? O a. OMR 6,000 O b. OMR 12,000 O c. OMR 8,000 O d. OMR 10,000
6.
Again & Again Company acquired a machine on October 1, 2013 at a cost of P 2,500,000 and depreciated it at 25% per annum on a straight line basis. On October 1, 2015, the entity spent P 500,000 on upgrade to the machine in order to improve its efficiency and increase the inflow of economic benefits over the machine‘s remaining useful life. What amount of depreciation should be recognized for the year September 30, 2016? a. 750,000 b. 625,000 c. 850,000 d. 875,000
bhavesh