A piece of newly purchased industrial equipment costs $1,010,000 and is classified asseven-year property under MACRS. The MACRS depreciation schedule is shown in theMACRS Table.Calculate the annual depreciation allowances and end-of-the-year book values for thisequipment. (Do not round intermediate calculations and round your answers to thenearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary.)Year12345678BeginningBook ValueDepreciationAllowanceEnding BookValue Year25678 A WN343-Year33.33%44.4514.817.41Property Class5-Year20.00%32.0019.2011.5211.525.767-Year14.29%24.4917.4912.498.938.928.934.46

MARCS stands for Modified Accelerated Cost Recovery System Marcs depreciation system is used to…

Answered: A piece of newly purchased industrial…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QK company makes it a policy that for any new piece of apparatus, the annual depreciation cost should not exceed 10% of the First Cost while the Salvage Value is 20% of the First Cost. Determine the minimum length of service life in years ( n ), necessary, if the depreciation method used is: Straight line method (SLM) , Declining Balance Method (DMB) and Double Declining Method (DDBM).
On January 1, 2022, Pina Colada Country Club purchased a new riding mower for $29,000. The mower is expected to have a 8-year life with a $8,000 salvage value.What journal entry would Pina Colada make on December 31, 2022, if it uses straight-line depreciation? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount
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For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400
Calculate depreciation. A machine cost $165,000 on April 28, 2021. Its estimated salvage value is $5,000 and its expected life is eight years. Instructions Prepare a depreciation schedule for each year using each of the following methods, showing the figures used. These schedules should have formulas in the cells referencing the "input section" that was discussed previously. (a) Straight-line (b) Double-declining-balance (c) Sum-of-the-years'-digits
A elearning.act.edu.om Muscat LLC purchased a machine on 1st January, 2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 350,000 and on 31st December, 2020 was OMR 500,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting. a. What is the amount of Depreciation Adjustment? b. What is the amount of Additional Depreciation? C. What is the amount of Back Log Depreciation?
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January 1, 2021, the first day of operation. and is depreciated by the straight line method. The machine has no residual value, has a five-year life, Kerr Company purchased a machine for P1,150,000 on The current cost of the machine. was P1,250,000 on iho current cost of the machine. was P1,250,000 on December 31, 2021. ahe machine has no. residual value, has a five-year life, 1 What amount of depreciation should be reported in the historical cost income statement for 2021? a. 230,000 b. 250,000 с. 240,000 d. 200,000 2. What amount of depreciation should be reported in the current cost income statement for 2021? а. 140,000- b. 230,000 c. 240,000 d. 250,000 3. What amount should be reported as realized holding gain on the equipment for 2021? a. 20,000 b. 10,000 c. 30,000 d. 4. What amount should be reported as unrealized holding gain on the equipment for 2021? 100,000 b. 280,000 CC. Sc80,000with CamScanner d. а. 50,000
A Company purchased a piece of machinery for $60,000 on January 1, 2019 and has been depreciating the machine using the double-declining-balance method based on a five-year estimated useful life and $10,000 salvage value. On January 1, 2021, A Company decided to switch to the straight-line method of depreciation. The salvage value is still $10,000 and the estimated useful life did not change. Ignore income taxes. Required: (show the computing process and precise journal entries) (1) Prepare the appropriate journal entry, if any, to record the accounting change. (2) Prepare the journal entry to record depreciation for 2021.

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