UUJICU tis accounting treat-oberBE7-6 On January 1, 2017, the Hermann Company records show Equipment $36,000 andAccumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, thecompany concludes that the equipment has a remaining useful life of only 2 years with thesame salvage value. Compute the revised annual depreciation.ibliud ali noSX9 s vio-vd BE7-7 Prepare tabular summaries to record these transactions. (a) Echo Company retires(d) bits delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 onthis delivery equipment. No salvage value is received. (b) Assume the same informationas in part (a), except that accumulated depreciation for the equipment is $37,200 insteadof $41,000.20tonbas noitsioonBE7-8 Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The officeequipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciationof $42,000. Depreciation for the first 7 months of 2017 is $4,600. Prepare a tabular summaryto (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment.nts.on BE7-9 Abner Company purchases a patent for $156,000 on January 2, 2017. Its estimatedbiasd.bormpnt ei tiTol beuseful life is 6mins (a) Compute amortization expense for the first year.years.s(b) Show how this patent is reported on the balance sheet at the end of the first year.leeogong asound lo elomBE7-10 Suppose in its 2017 annual report that McDonald's Corporation reports beginningtotal assets of $28.46 billion, ending total assets of $30.22 billion, net sales of $22.74 bil-lion, and net income of $4.55 billion.(a) Compute McDonald's return on assets.(b) Compute McDonald's asset turnover.ndeacreovo 2ely iBE7-11 Suppose Nike, Inc. reported the following plant assets and intangible assets forpatentsd assets

Answered: BE7-8 Antone Company equipment…

Business

Accounting

BE7-8 Antone Company equipment originally cos of $42,000. Depreciation to (a) update depreciatic

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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ezto.mheducation.com Saved Help Save & E8-18 (Algo) Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line Depreciation) LO8-3, 8-5 On January 1 of the current year, the records of Khouri Corporation showed the following regarding a truck: Equipment (estimated residual value, $8, 200) Accumulated depreciation (straight-line, three years) $ 23,600 6,600 On December 31 of the current year, the delivery truck was a total loss as the result of an accident. Required: 1. Based on the data given, compute the estimated useful life of the truck. 2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverag on the truck. 3. Assuming Khouri had casualty insurance on the truck and received $10,500 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Complete this question by entering your answers in the tabs…
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Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $86,000 $12,900 200,000 miles — 30,000 miles 2 119,000 14,280 360,000 $23,800 36,000 3 103,000 14,420 212,000 $82,400 21,200 4 100,000 12,000 260,000 $20,000 31,200 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No.…
E10.1 (LO 1) Excel (Depreciation Computations-SL, SYD, DDB)Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Instructions a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (In performing your calculations, round constant percentage to the nearest one-hundredth of a point and round answers to the nearest dollar.)
E8-28 Computing Depreciation and Accounting for a Change of Estimate In January 2016, Rankine Company paid $8,500,000 for land and a building. An appraisal estimated that the land had a fair value of $2,500,000 and the building was worth $6,000,000. Rankine estimated that the useful life of the building was 30 years, with no residual value. a. Calculate annual depreciation expense using the straight-line method. b. Calculate depreciation for 2016 and 2017 using the double-declining-balance method. c. Assume that in 2018, Rankine changed its estimate of the useful life of the building to 25 years. If the company is using the double-declining-balance method of depreciation, what amount of depreciation expense would Rankine record in 2018?