CengageNOWv2 | Online teaching and learning resource from Cengage LearningCalculatorSale of EquipmentEquipment was acquired at the beginning of the year at a cost of $612,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,360.a. What was the depreciation for the first year? Round your answer to the nearest cent.b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $102,987.Round your answer to the nearest cent and enter as a positive amount.c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.PreviousNext>Email InstructorSubmit Test for GradingAll work saved.

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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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Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) Calculate the following: Click here to access the various depreciation tables. If required, round your final answers to the nearest dollar. If your answer is zero, enter "0". The first year of depreciation on a office building that cost $250,000 purchased June 2, 2022. 4,168 X b. The second year (2023) of depreciation on a computer that cost $5,000 purchased in May 2022, using the half-year convention and accelerated depreciation considering any bonus depreciation taken Ov a. The first year of depreciation on a computer costing $2,800 purchased in May 2022, using the half-year convention and straight-line depreciation with no bonus depreciation 280 b. The third year of depreciation on business furniture costing $10,000 purchased in March 2020, using the half-year convention and accelerated depreciation but no bonus depreciation. 1,748 x
AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $ 50,000Machine life in years :5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1, 800 3 2,200 4 2, 100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight- line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods?…
Units-of-activity depreciation A tractor acquired at a cost of $400,000 has an estimated residual value of $122,800, has an estimated useful life of 36,000 hours, and was operated 4,670 hours during the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Determine the following. Round your answer for depreciation rate to two decimal places. a. The depreciable cost b. The depreciation rate c. The units-of-activity depreciation for the year per hour
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
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Byrd Inc., a calendar year-end company, purchased a machine on 1/1/X1 with the following attributes: Cost $ 50,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Byrd uses the straight-line depreciation method, answer each of the following questions: (do not include decimals or cents) Question #1: How much depreciation expense should be recorded in 20X2 (the second year of the asset's life)? Answer: $ Question #2: What should be the balance in the "Accumulated Depřeciation" account at the end of 20X2, after all year-end journal entries? Answer: $ Question #3: What should be the book value of the machine at the end of 20X2, after all year-end journal entries? Answer: $
I need formulas for each of the yellow highlighted For example C7 is January 1 book value, so on and so on... Please and thank you
Please no written by hand solutions Solve in a spreadsheet with excel functions A purchased machine cost $320,000, with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Its useful life is 10 years. a) Compute the SL depreciation schedule over its useful life. b) Compute the DDB depreciation schedule over its useful life. c) Compute the MACRS depreciation schedule. Its ADR life is 12 years. d) Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture on the sale. Use the MACRS schedule.
Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $50,000 Machine life in years:5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight-line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type…
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