Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost, $8,640 with useful life of 8 years; Delivery Equipment: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,480 with useful life of 4 years. Assume the residual value of all the assets is zero and the straight- line method is used. Big Rig's monthly depreciation jounal entry will include a O A. credit to Accumulated Depreciation - Equipment of $475 O B. debit to Accumulated Depreciation - Equipment of $475 OC. debit to Depreciation Expense - Equipment of $5,700 OD. credit to Depreciation Expense - Equipment of $5,700

Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost, $8,640 with useful life of 8 years; Delivery Equipment: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,480 with useful life of 4 years. Assume the residual value of all the assets is zero and the straight- line method is used. Big Rig's monthly depreciation jounal entry will include a O A. credit to Accumulated Depreciation - Equipment of $475 O B. debit to Accumulated Depreciation - Equipment of $475 OC. debit to Depreciation Expense - Equipment of $5,700 OD. credit to Depreciation Expense - Equipment of $5,700

Name: Big Rig Delivery Service has the following plant assets: Communicatio
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost, $8,640 with useful life of 8 years; Delivery Equipment: Cost, $18,000 with useful life of 12 years; and Computer: Cost,$12,480 with useful life of 4 years. Assu

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

evertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods  straight-line  diminishing balance (depreciation rate has been calculated as 31%)  units of production (assume the van was driven 78,000 kilometres during the financial year) b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balance method. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method. error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward Question Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a…
A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.
An asset was purchased at a cost of P7,000. It was estimated to have a useful life of ten years with a salvage value of P800 at the end of the time. Determine the total depreciation one year before it was sold using the straight line method.
A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 and an estimated useful te of 20 years. Determine the following (a) The depreciable cost (b) The straight-line rate (e) The annual straight-line deprecation
The cost basis is $81,000. The useful life is five years with no salvage value. Please provide a depreciation schedule (d, for k = 1- 5) for 200% declining balance with switchover to straight line. Please specify the year to switchover. Determine the depreciation amounts using the 200% declining balance and straight-line methods and BV amounts for each year. (Round to the nearest dollar.) Depreciation SL Method, $ Amount Selected, 200% DB Year BVK Method, $ 1 3 4 Switchover occurs in year LO
Assume that XYZ catering services paid $144,000 for equipment with a16 -year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years. Record depreciation expense on the equipment for year 7 by the straight-line method. First, select the formula to calculate the company's revised depreciation expense on the equipment for year 7. Then enter the amounts and calculate the depreciation for year 7.(Enter "0" for items with a zero value.) Revised ( Book value - Residual value ) / Revised useful life remaining = depreciation
Isabel Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an estimated useful life of 6 years. The company uses straight-line method. After using the asset for two years, The company decided to change the depreciation method to sum of the year's digit method. What is the revised depreciation expense for the 3rd year?
Simpson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of P750,000. How much is the amount of revaluation surplus when the asset is revalued?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $179,000. With additional options costing $14,000, the cost basis for depreciation purposes is $193,000. Its MV at the end of six years is estimated as $36,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year two is $ (Round to the nearest dollar.) b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.) c. The BV at the end of year one is $ (Round to the nearest dollar.)
A piece of newly purchased industrial equipment costs $983,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year 1 2 3 4 5 6 7 8 Beginning Book Value Depreciation Ending Book Value
Best Buy Company Limited (Best Buy) bought a machine for $400,000 on 1 July 2019. The machine had an estimated residual value of $50,000, and had estimated useful life of 10 years, or had an estimated operation output of 50,000 hours. The financial year-end date of Best Buy is 31 December. Required: (a) Compute the depreciation on this machine in the years of 2019 and 2020 using the following methods. (i) Straight-line (with depreciation calculated to the nearest whole month) (ii) 200%-declining-balance (with half-year convention) (iii) Units-of-output method (hours of operation:2,500 in 2019; 5,000 in 2020) 2019 (i)$________ (ii)$________ (iii)$________ 2020 (i)$________ (ii)$________ (iii)$________ (b) Which of the method(s) in part (a) would result in the highest net profit in the year of 2019?Briefly explain.
A plant asset cost $313600 and is estimated to have a $37000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be O $31170. O $39036. O $27720. O $44100.