A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years.Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020B. On January 1, 2017, Sar Co. purchased oquipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24,000 and an entimatedusieful lhfe of 6 years. On Aprıl 1, 2020, the company sold the equipment for $ 140,000 cash.Required Prepare journal entries to record:1. The partial year's depreciation (the update) on April 1, 2020.2 The sale of the equipment on April 1, 2020.YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE"" BETWEEN NUMBERS:Dr. Cash 10000C Land 10000For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).I....B.ParagraphArial14px

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Description: A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years.Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020B. On

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A. On July 1, 2020 ABC Co. purchased a patent for $ 2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020 B. On January 1, 2017, Sar Co. purchased equipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24A000 and an entimated usieful hfe of 6 years. On April 1, 2020, the company sold the equipment for $ 140,000 cash. Required Prepare journal entries to record: 1. The partial year's depreciation (the update) on April 1, 2020. 2 The sale of the equipment on April 1, 2020. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM, DO NOT USE "" BETWEEN NUMBERS: Dr. Cash 10000 C Land 10000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). T. X O B Q

A. On July 1, 2020 ABC Co. purchased a patent for $ 2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020 B. On January 1, 2017, Sar Co. purchased equipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24A000 and an entimated usieful hfe of 6 years. On April 1, 2020, the company sold the equipment for $ 140,000 cash. Required Prepare journal entries to record: 1. The partial year's depreciation (the update) on April 1, 2020. 2 The sale of the equipment on April 1, 2020. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM, DO NOT USE "" BETWEEN NUMBERS: Dr. Cash 10000 C Land 10000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). T. X O B Q

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years.
Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020
B. On January 1, 2017, Sar Co. purchased oquipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24,000 and an entimated
usieful lhfe of 6 years. On Aprıl 1, 2020, the company sold the equipment for $ 140,000 cash.
Required Prepare journal entries to record:
1. The partial year's depreciation (the update) on April 1, 2020.
2 The sale of the equipment on April 1, 2020.
YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE"" BETWEEN NUMBERS:
Dr. Cash 10000
C Land 10000
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
I.
...
B.
Paragraph
Arial
14px

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Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. 2022 Depreciation expense 5000 eTextbook and Media Attempts: unlimited %24
Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck on January 1, 2019, for $ 52,000. At acquisition, Tinker had estimated that the truck would have a useful life of 6 years and a residual value of $4,000. On December 31, 2021, the truck had a book value of $ 28,000. Required: Prepare the journal entries to recognized the depreciation expense for 2022 prior to the sale and the sale of the truck assuming the truck sold at the following different prices (you will have 3 entries total): $32,000 26,000
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