224110/take2zınhA real estate office using the double-declining-balance method of depreciation purchased officefurniture costing $9,000 and put it in use on April 1. The furniture is expected to have a usefullife of 10 years and an estimated resale value of $600.Refer to the Real Estate Office scenario. Compute the depreciation expense for April 1 throughDecember 31 of the first tax year and all 12 months of the second and third years.O $4,008IO $4,200O $4,104S4,392

Purchase price = $9000 Useful life = 10 years First to calculate Straight line rate So double…

Answered: 2241 10/take 2zınh A real estate office…

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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S10-5 Calculating depreciation by three methodsfirst year only At the beginning of the year, JetQuick Airlines purchased a used Boeing jet for $43 million. JetQuick expects the plane to remain useful for five years (4 million kilometres) with a residual value of $7 million. JetQuick expects the plane to be flown for 1.4 million kilometres the first year. Requirements 1 Calculate JetQuick's first-year 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 Show the plane's carrying amount at the end of the first year under each depreciation method.
Required information Exercise 7-11A Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $42,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 180,000 miles. Actual miles driven each year were 46,000 miles in year 1 and 50,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-11A Part 2 2. Double-declining-balance. Annual Year Depreciation 2. < Prev 10 11 of 20 Next e to search ASUS
Q1// On 1/1/2012 Tikrit company purchased Machines that cost 500,000, the machines is expected useful life 8 years, and estimate salvage value Zero (20 Mark) .Depreciation Expenses at the end of 2014 will be 1
anvas X XO Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR 4 (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. CR DR Account Date
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Ron Valdez worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,940. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improvement Company in Topeka, Kansas, and earned $30,360 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company. Round your answers to the nearest cent. Use Figure 5.1 to determine SUTA caps in Iowa and Kansas. a. Rowland Construction Company $fill in the blank 1 b. Ford Improvement Company $fill in the blank 2
Required information Exercise 7-11A Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $42,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 180,000 miles. Actual miles driven each year were 46,000 miles in year 1 and 50,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-11A Part 3 3. Activity-based. Annual Year Depreciation 2. to search ASUS
17 Your company purchased an asset with a total cost of $300,000. The asset has an expected useful life of 20 years. The asset also has an expected residual value of $50,000. Please prepare the depreciation amounts for the first 3 years of the asset’s life using Straight-Line Method and Double Declining Balance methods. Please detail the depreciation amount and the ending book value for each year.
27 01:05:53 Mc Graw Hill Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the double- declining-balance method. The machine's useful life is estimated to be 5 years with a $2,000 salvage value. The machine's book value at the end of year 2 is: Multiple Choice $15,600 $6,800. $11,200. < Prev 27 of 40 www www Noxt
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10.5 Effects of Changes in Estimates on Depreciation Expense At the end of each year, Patty Chu, the chief accountant at Rex Lin Enterprises, a Singapore-based trading company, reviews long-term assets at the end of each year to determine whether changes are called for in how these assets are depreciated. In December 2017, her attention focused on two assets in particular: Warehouse Building Date acquired Cost Accumulated depreciation end of 2017 Useful life Residual value 25 years $200,000 $38,000 $225,000 40 years 1,600,000 1/1/13 1/1/12 $10,000 100,000 Patty is proposing the following changes: For the warehouse: a decrease in the useful life to 20 years and a decrease in residual value to $6,000. For the building: an increase in the useful life to 50 years and a decrease in the residual value to $55,000. Before agreeing to the changes, Patty's bosses would like to know what the depreciation charges will be for each asset if the changes are adopted. All assets are depreciated using…
Question 3It is now March 31, 2008, and you are contemplating the disposal of an old piece of equipment. The equipment cost $36,000 and has accumulated depreciation of $20,000 at December 31 of the prior calendar year-end. The equipment is being depreciated over 10 years down to a residue of $6,000Record the sale of the equipment at March 31, 2008 assuming:a) The equipment is discardedb) The equipment is sold for $6,000, $10,000 or $20, 000.c) The equipment is exchanged for new, similar equipment having a cost of $42,000. Trade-in-Allowance for the old equipment is $18,000.Question 4On January 1, 20X2, The GenKota Winery purchased a new bottling system. The system has an expected life of 5 years. The system cost $325,000. Shipping, installation, and set up were an additional $35,000. At the end of the useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of the bottling system for $26,000. She further anticipates total output of 668,000 bottles over the useful…

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