Assume 10% salvage value, 5yr estimated useful life, and assume the asset was purchased on May 1s* 2019 (assume co's year-end is Dec 31*). Machine purchase price = $325,000, cost to ship & install the machine $25,000. 1. For 2019 and 2020 only: Calculate Depreciation Exp using Straight Line, Double Declining Balance and Sum of the Year's Digits 2. For all 3 of the depreciation methods above, show the Net Book Value at the end of 2020 3. Using Straight Line Deprec, assume the co sold this asset on 4/30/21 for $280,000: a. calculate any gain or loss on the sale b. make the entry to record the sale of the asset

Assume 10% salvage value, 5yr estimated useful life, and assume the asset was purchased on May 1s* 2019 (assume co's year-end is Dec 31*). Machine purchase price = $325,000, cost to ship & install the machine $25,000. 1. For 2019 and 2020 only: Calculate Depreciation Exp using Straight Line, Double Declining Balance and Sum of the Year's Digits 2. For all 3 of the depreciation methods above, show the Net Book Value at the end of 2020 3. Using Straight Line Deprec, assume the co sold this asset on 4/30/21 for $280,000: a. calculate any gain or loss on the sale b. make the entry to record the sale of the asset

Name: Assume 10% salvage value, 5yr estimated useful life, and assume the a
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Description: Assume 10% salvage value, 5yr estimated useful life, and assume the asset was purchased onMay 1st 2019 (assume co's year-end is Dec 31st). Machine purchase price = $325,000, cost to5 of 6 ship & install the machine $25,000.1. For 2019 and 2020 only:

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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