ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P3,000 and estimated useful life is 5 years. On Jan 1, 20X3, ABC decided to change the depreciation method into the sum-of-years' digit method. How much is the depreciation expense at Dec 31, 20X3?

ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P3,000 and estimated useful life is 5 years. On Jan 1, 20X3, ABC decided to change the depreciation method into the sum-of-years' digit method. How much is the depreciation expense at Dec 31, 20X3?

Name: ABC Corp uses the straight line method to depreciate a machine purchas
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P3,000 and estimated useful life is 5 years. On Jan 1, 20X3, ABC decided to change the depreciation method into the sum-of-y

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

See similar textbooks

Similar questions

Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P3,000 and estimated useful life is 5 years. On Jan 1, 20X3, ABC decided to change the useful life into 6 years. How much is the depreciation expense at Dec 31, 20X3?
ABC Corp uses the double declining balance method to depreciate a machine purchased on June 30, 20X1 for P20,000. Estimated scrap value is P2,000 and estimated useful life is 4 years. How much is the depreciation expense at Dec 31, 20X2?
Mitchell Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P3,000 and estimated useful life is 5 years. On Jan 1, 20X3, ABC decided to change the useful life into 6 years. How much is the depreciation expense at Dec 31, 20X3? With journal entry
ABC Corp uses the sum-of-years' digit method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P2,000 and estimated useful life is 4 years. What is the asset's carrying value at December 31, 20X3?
On January 1, Brando Corp. purchased a machine costing $35,989. The expected useful life of the machine is 5 years and the residual value is $4,461. How much is the annual depreciation expense assuming use of the straight-line depreciation method? Provide your answer to the nearest whole dollar (i.e., No decimal places.)
SSG bought a machine for $40,000 in January 19W8. The machine had an expected useful life of six years and an expected residual value of $10,000. The machine was depreciated on the straight-line basis. In December 20X1, the machine was sold for $15,000. The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. The total amount of depreciation and profit/loss charged to the internal income statement over the life of the machine was $ ........................................
On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be used, what is depreciation expense for the first year of the asset's life? O $52867 O $79300 O $55459 O $82800
In January 20x8, Titania Co. purchased a machine that cost $80,000. The equipment is estimated to have a 4-year useful life and a salvage value of $12,000. a) Compute the amount of depreciation expense for 20x8 and 20x9 using sum-of-the-years'-digits method. b) Assume the Company used straight-line depreciation and sold the machine on July 1, 20x10 for $25,000 cash. Record the journal entry for the disposal and indicate the debit and credit entry(ies).
ABC Corp uses the double declining balance method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P2,000 and estimated useful life is 4 years. What is the asset's carrying value at December 31, 20X3?