Blue Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost. Equipment 2021 2021 Jan. 1 Balance 126,630 June 30 Cost of equipment sold Aug. 10 Purchases 31,540 (purchased prior to 2021) 21,250 12 Freight on equipment purchased 820 25 Installation costs 2,510 Nov. 10 Repairs 450 Assuming that company policy is to charge a full year depreciation in the year of purchase and the year of sale, compute the proper depreciation charge for 2021 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2021, balance was purchased in 2019. (Round answers to 0 decimal places, e.g. 45,892.) (1) Straight-line $ (2) Sum-of-the-years'-digits
Blue Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost. Equipment 2021 2021 Jan. 1 Balance 126,630 June 30 Cost of equipment sold Aug. 10 Purchases 31,540 (purchased prior to 2021) 21,250 12 Freight on equipment purchased 820 25 Installation costs 2,510 Nov. 10 Repairs 450 Assuming that company policy is to charge a full year depreciation in the year of purchase and the year of sale, compute the proper depreciation charge for 2021 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2021, balance was purchased in 2019. (Round answers to 0 decimal places, e.g. 45,892.) (1) Straight-line $ (2) Sum-of-the-years'-digits
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost.
|
Equipment
|
|||||||||
| 2021 | 2021 | ||||||||
| Jan. 1 | Balance | 126,630 | June 30 | Cost of equipment sold | |||||
| Aug. 10 | Purchases | 31,540 | (purchased prior to 2021) | 21,250 | |||||
| 12 | Freight on equipment purchased | 820 | |||||||
| 25 | Installation costs | 2,510 | |||||||
| Nov. 10 | Repairs | 450 |
Assuming that company policy is to charge a full year
| (1) | Straight-line |
$
|
||
| (2) | Sum-of-the-years'-digits |
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