8-4. Use of asset. Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The company has determined that the salvage is $2,000, and the life of the asset is five years. Depreciation is to be straight-line. Journalize the entry to record depreciation for the first year of the asset's life. a. b. Journalize the entry to record depreciation for the first month of the asset's life. 8-5. Use of asset. Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000. Nerdz has determined that the life of the truck will be three years with no salvage. Depreciation is to be straight-line. Journalize the entry to record the depreciation for the first year of the asset's life. a. b. Journalize the entry to record the depreciation for the first month of the asset's life.

8-4. Use of asset. Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The company has determined that the salvage is $2,000, and the life of the asset is five years. Depreciation is to be straight-line. Journalize the entry to record depreciation for the first year of the asset's life. a. b. Journalize the entry to record depreciation for the first month of the asset's life. 8-5. Use of asset. Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000. Nerdz has determined that the life of the truck will be three years with no salvage. Depreciation is to be straight-line. Journalize the entry to record the depreciation for the first year of the asset's life. a. b. Journalize the entry to record the depreciation for the first month of the asset's life.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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Which statement below is correct? a. Real property is depreciated using the half-year convention. b. Residential real estate is depreciated over a 39-year life. c. One-half month of depreciation is taken for the month real property is disposed of. d. Salvage value is considered in MACRS depreciation.
In Year 1, Utica Machinery Company uses the asset from RE11-4 for 7,500 hours. Prepare the journal entry to record the depreciation.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
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Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $47,675. Question Content Area a. What was the depreciation for the first year? Round your answer to the nearest cent.$fill in the blank 0c4447fd4012faf_1 b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $98,318. Round your answer to the nearest cent. Enter your answer as a positive amount.$fill in the blank 0c4447fd4012faf_2 Question Content Area c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment
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An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $28,167. Using MACRS depreciation, the first year depreciation is: Enter your answer as: 123456.78
Canyon Company has a used delivery truck that originally cost $24,500. Straight-line depreciation on the truck has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Canyon disposes of the truck. Required Prepare journal entries to record:a. Depreciation expense to the date of disposal.b. Sale of the truck for cash at its book value.c. Sale of the truck for $14,000 cash.d. Sale of the truck for $11,000 cash.e. Theft of the truck. Canyon carries no insurance for theft.
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