Tala Inc uses revaluation accounting for its Equipment. July 7, 2023: Purchased Equipment for $250 000 on account.Estimated Useful Life: 10 yearsResidual Value: $0Depreciation Method: Straight-line (nearest full month)Frequency of Revaluation: Annually Valuation DataJuly 7, 2023: $250 000December 31, 2023: $234 000December 31, 2024: $220 000 December 31, 2024Dr.Cr.To record depreciation expenseDr.Cr.To eliminate accumulated depreciation December 31, 2023Dr.Cr.To record depreciation expenseDr.Cr.To eliminate accumulated depreciationDr.Cr.÷

If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

December 31, 2024 Dr. Cr. To record depreciation expense Dr. Cr. To eliminate accumulated depreciation December 31, 2023 Dr. Cr. To record depreciation expense Dr. Cr. To eliminate accumulated depreciation Dr. Cr. ÷

December 31, 2024 Dr. Cr. To record depreciation expense Dr. Cr. To eliminate accumulated depreciation December 31, 2023 Dr. Cr. To record depreciation expense Dr. Cr. To eliminate accumulated depreciation Dr. Cr. ÷

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 60E

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Question

Tala Inc uses revaluation accounting for its Equipment.

July 7, 2023: Purchased Equipment for $250 000 on account.

Estimated Useful Life: 10 years
Residual Value: $0
Depreciation Method: Straight-line (nearest full month)
Frequency of Revaluation: Annually

Valuation Data

July 7, 2023: $250 000
December 31, 2023: $234 000
December 31, 2024: $220 000

December 31, 2024
Dr.
Cr.
To record depreciation expense
Dr.
Cr.
To eliminate accumulated depreciation

December 31, 2023
Dr.
Cr.
To record depreciation expense
Dr.
Cr.
To eliminate accumulated depreciation
Dr.
Cr.
÷

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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