An asset was purchased for $70,000 and originally estimated to have a useful life of 10 years with a residual value of $3,800. After 2 years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,520. a. Determine the amount of the annual depreciation for the first 2 years. $ b. Determine the book value at the end of Year 2. c. Determine the depreciation expense for each of the remaining years after revision.

An asset was purchased for $70,000 and originally estimated to have a useful life of 10 years with a residual value of $3,800. After 2 years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,520. a. Determine the amount of the annual depreciation for the first 2 years. $ b. Determine the book value at the end of Year 2. c. Determine the depreciation expense for each of the remaining years after revision.

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

Equipment was acquired at the beginning of the year at a cost of $78,840. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,860. a. What was the depreciation expense for the first year?$fill in the blank 4b6aeefb5057020_1 b. Assuming the equipment was sold at the end of the second year for $59,600, determine the gain or loss on sale of the equipment.$fill in the blank 4b6aeefb5057020_2 c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank or enter "0". - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -
New lithographic equipment, acquired at a cost of $875,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $75,300. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $128,100. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Year DepreciationExpense Accumulated Depreciation,End of Year Book Value,End of Year 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $ b. Double-declining-balance method Year DepreciationExpense Accumulated Depreciation,End of Year Book Value,End of Year 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $ Feedback…
A building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $2,800 and an estimated useful life of four years. Determine the following. rate (a) The double-declining-balance (b) The double-declining-balance depreciation for the first year %
Equipment acquired on January 8, 20Y1, at a cost of $675,000, has an estimated useful life of 17 years and an estimated residual value of $135,000. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depreciation? Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. Depreciation expense 20Y1$ 20Y2$ 20Y3$
A building acquired at the beginning of the year at a cost of $112,000 has an estimated residual value of $7,800 and an estimated useful life of four years. Determine the following. (a) The double-declining-balance rate (b) the double declining-balance depreciation for the first year
Equipment was acquired at the beginning of the year at a cost of $79,200. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,860. a. What was the depreciation expense for the first year? $ b. Assuming the equipment was sold at the end of the second year for $59,900, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Accounts Payable Accumulated Depreciation Cash Gain on Sale of Equipment Loss on Sale of Equipment
Computer equipment was acquired at the beginning of the year at a cost of $60,400 that has an estimated residual value of $4,400 and an estimated useful life of 5 years. a. Determine the depreciable cost.fill in the blank 1 of 1$ b. Determine the straight-line rate.fill in the blank 1 of 1% c. Determine the annual straight-line depreciation.fill in the blank 1 of 1$
Concord Corporation purchased a piece of equipment for $85,200. It estimated an 5-year life and $2,200 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $17,620.Compute the revised depreciation, assuming Concord uses the straight-line method. Revised annual depreciation $enter the revised annual depreciation in dollars
A building acquired at the beginning of the year at a cost of $97,200 has an estimated residual value of $6,800 and an estimated useful life of four years. Determine the following. a. The double-declining-balance rate fill in the blank 1 % b. The double-declining-balance depreciation for the first year
Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming that the equipment was sold at the end of the second year for $631,697 determine the gain or loss on the sale of the equipment Journalize the entry on Dec. 31 to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal SAMSUNG PreviouS Next
Revision of Depreciation Equipment with a cost of $687,600 has an estimated residual value of $68,100, has an estimated useful life of 35 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. b. Determine the book value after 18 full years of use. c. Assuming that at the start of the year 19 the remaining life is estimated to be 21 years and the residual value is estimated to be $56,100, determine the depreciation expense for each of the remaining 21 years.
Equipment with a cost of $742,500 has an estimated residual value of $67,500, has an estimated useful life of 25 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.fill in the blank 1 of 1$ b. Determine the book value after 13 full years of use.fill in the blank 1 of 1$ c. Assuming that at the start of the year 14 the remaining life is estimated to be 19 years and the residual value is estimated to be $70,400, determine the depreciation expense for each of the remaining 19 years.