9) Big Valley Ltd. purchased machinery on January 2, 2019, at a total cost of $85,000. The machinery estimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2019 and 2 machinery was used 7,000 and 7,500 hours, respectively. Compute depreciation under straight-line, units-of-production, and double-diminishing-balance meth 2019 and 2020. 2019 2020 Straight-line depreciation Units-of-production depreciation Double-diminishing-balance depreciation L.LI

9) Big Valley Ltd. purchased machinery on January 2, 2019, at a total cost of $85,000. The machinery estimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2019 and 2 machinery was used 7,000 and 7,500 hours, respectively. Compute depreciation under straight-line, units-of-production, and double-diminishing-balance meth 2019 and 2020. 2019 2020 Straight-line depreciation Units-of-production depreciation Double-diminishing-balance depreciation L.LI

Name: 9) Big Valley Ltd. purchased machinery on January 2, 2019, at a total
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 9) Big Valley Ltd. purchased machinery on January 2, 2019, at a total cost of $85,000. The machinery'sestimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2019 and 2020, themachinery was used 7,000 and 7,500 hou

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

Required information (The following information applies to the questions displayed below} On January 1, 2021, the Allegheny Corporation purchased equipment for $128.000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 200,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. 1. Straight-line. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator Formula Depreciation Expense Amounts Depreciation Expense 2021 2022 2. Double-declining-balance. Double-Declining-Balance Method Formula Depreciation Expense Amount for 2021 Amount for 2022 3. Units of production (units produced in 2021, 31,000; units produced in 2022, 26,000). (Round "Depreciation per unit rate" answers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense Depreciation per unit rate…
LILY Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of ₱500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is ₱1,200,000. What was the acquisition cost of the machinery? A. ₱ 3,000,000 B. ₱ 3,500,000 C. ₱ 4,000,000 D. ₱ 4,500,000
Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $16000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used? O $16740. $13540. $28140. $33480.
Culver Automotive purchased equipment on October 1, 2024, at a total cost of $182,000. The machine has an estimated useful life of eight years or 100,000 hours, and an estimated residual value of $42,000. During 2024 and 2025, the machinery was used 6,300 and 14,700 hours, respectively. Calculate depreciation expense at December 31, 2024 and December 31, 2025, under the following depreciation methods: (Round answers to 0 decimal places, e.g. 5,275. and Round Depreciation cost per unit to 1 decimal places, e.g. 527.5) Straight-line depreciation Units-of-production depreciation Double diminishing-balance depreciation $ LA $ LA 2024 $ LA $ LA 2025
A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000. QUESTION: Based on the above data, answer the following: Assuming the company is using revaluation model. Answer the questions: How much is the depreciation in 2018? How much is the revaluation surplus on January 1, 2019? How much is the depreciation in 2019?
Hanshaben
Spiral Company uses the sun-of-the years’ digits method to depreciate equipment purchased in January 2021 for P20,000. The estimated residual value of the equipment is P2,000 and the estimated useful life is 4 years. What should Spiral Company report as the asset’s carrying amount as of December 31, 2023? a. 1,800 b. 2,000 c. 4,500 d. 3,800
On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $21,900. The drill press is expected to last 10 years and has a residual value of $5.100. During its 10- year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,500 and 75,000 units, respectively, were produced. Required: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.) 2018 2019 Depreciation Book Values
Required: Prepare the journal entry at 31 December 2021 to record the depreciation for 2021. Show your workings.
On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the straight-line method, the amount of depreciation that should be recorded during 2021, is approximately O $3,000 O $10,000 O $11,000 O $30,000