An asset was purchased for £2,300,000 on the 1st of Jan 2018. On the date of purchase it was estimated to have useful economic life of 7 years and residual value of £200,000. For year ended 31 Dec 2019, the residual value estimate was revised to £260,000. Calculate the depreciation expense for the year ended 31 Dec 2019. Select one: a. 270,000 b. 300,000 c. 320,000 d. 290,000

An asset was purchased for £2,300,000 on the 1st of Jan 2018. On the date of purchase it was estimated to have useful economic life of 7 years and residual value of £200,000. For year ended 31 Dec 2019, the residual value estimate was revised to £260,000. Calculate the depreciation expense for the year ended 31 Dec 2019. Select one: a. 270,000 b. 300,000 c. 320,000 d. 290,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

See similar textbooks

Similar questions

Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
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?
Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
An asset acquired January 1, 2018, for OMR 20,000 with an estimated 10-year life and no residual value. Using the double-declining balance method, depreciation for 2019 would be: Select one: A. 2,560 B. 3,200 C. 4,000 D. 2,048
Need answer of this question
Subject: Advance finance accounting Q) An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.Required:Provide journal entries to account for the revaluation.
8. An equipment was purchased for P600,000 on January 1, 2019. It had an estimated useful life of 10 years, estimated residual value of P100,000 and was depreciated using straight line method. On December 31, 2022, the estimated useful life is revised to 12 years and the estimated residual value is changed to P50,000. How much is the depreciation for 2023?9. Refer to no.8. This time, assume the depreciation method is changed to SYD on Dec. 31, 2022 and that there is no change in the original useful life and residual value. How much is the depreciation for 2023?
An asset purchased on January 1, 2019, that originally cost $150,000 is being depreciated on a straight-line basis over an estimated useful life of 8 years, with no residual value. Near the end of 2021, management decided that a better estimate would be a total useful life of 10 years, with a residual value of $1,500. Depreciation expense in 2021 will be: Question 3 options: $11,100 $14,850 $18,750 $13,875
onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance method
ABC Ltd acquired an item of machinery on 1 July 2021 for a cost of $120 000 When the asset was acquired it was considered that the asset would have a useful life to the entity of five years, after which time it would have no residual value It was considered that the pattern of economic benefits would best be reflected by applying the sum-of-digits method Contrary to expectations, on 1 July 2023 the asset was sold for $80 000 Required 1. What was the profit on disposal on 1 July 2023 and what are the journal entries to record the disposal? (Use sum of digit depreciation method) 2. Prepare Depreciation Schedule for the period.
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net cash flows 7,980,000 Fair value 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b) Prepare the journal entry to record depreciation expense for 2021.
Nicholson Company purchased equipment on January 1, 2018, for €120,000 with an estimated residual value of €30,000 and estimated useful life of 8 years. On January 1, 2020, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €30,000. Using the straight-line method the new annual depreciation will be? A: 7,500 B: 6,750 C: 10,000 D: 9,000