A retail store using sum-of-the-years-digits method of depreciation purchased equipment costing$36,000 and put it in use on June 1. The equipment is expected to have a useful life of 10 yearsand an estimated resale value of $2,400.Refer to the Retail Store scenario. Compute the book value at the end of the second year.$26,938O $27,141O $26,684$29,084

The depreciation rate for each year is determined using the number of years in the remaining asset’s…

Answered: A retail store using…

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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A company bought a new display case for $42,000 and estimated residual value to be $2,000 and the useful life to be eight years. Using straight-line depreciation, what is the book value of the display case after three years? $24,000 $15,750 $15,000 $27,000
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Vijay
An equipment is purchased for P450,000.00 prepare a six year depreciation schedule using the Matheson formula if the estimated book value after five years is P87,500.00
Your business buys a copy machine for $8,000 on January 1. You estimate that the copy machine will produce 350,000 copies during its useful life; its salvage value after producing the 350,000 copies is projected to be $1,000. The copy machine produced 75,200 copies in year 1 and 68,300 copies in year 2. Calculate depreciation for each of the first two years using the units-of-production method.
3. Determine the annual depreciation charge and depreciation charge during the 5th year
Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 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.) 3. Activity-based. Annual Year Depreciation 1
4. On June 5, Sonny's Auction paid $1,860 for a display case. The business plans to use the case for 5 years. It estimates that the residual value will be $60. Construct a depreciation schedule using the straight-line method.?Depreciation first year Depreciation last year Book value last year Accumulated depreciation last year
A car was purchased by a florist business in May 20W7 for: $ Cost 20,000 Road tax 300 Total 20,300 The business adopts a date of 31 December as its year end. The car was traded in for a replacement vehicle in August 20X0 at an agreed value of $10,000. It has been depreciated at 25% per annum on the reducing-balance method, charging a full year's depreciation in the year of purchase and none in the year of sale. What was the profit or loss on disposal of the vehicle during the year ended December 20X0? A Profit: $1,436 B Profit: $1,562 C Profit: $3,576 D Profit: $3,672
Loss on sale of plant and machinery should be written off against: Depreciation fund account Sales account Share premium Profit & Loss Account A trader purchased a machinery for - 10,000 in Jan 2004. Depreciation is charged @ 25% diminishing balance. At the end of third year it was sold for - 1,000. Profit or Loss on sale of machine will be: (write the question and explain your solution in details on paper then upload it at the end of the exam) Loss - 2,406 Loss - 3,219 Profit - 2,300 Profit 2,400 II
Batman Inc. uses revaluation accounting for its Machinery. The following information has been provided. July 7, 2022: Purchased Machinery for $250 000 on account. Estimated Useful Life: 10 years Residual Value: $0 Depreciation Method: Straight-line (nearest full month) Frequency of Revaluation: Annually Valuation Data July 7, 2022: $250 000 December 31, 2022: $234 000 December 31, 2023: $220 000 Prepare all necessary journal entries at December 31, 2022 and 2023.

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