Equipment acquired on January 6 at a cost of $459,240, has an estimated useful life of 19 years and an estimated residual value of $62,805. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? B. What was the book value of the equipment on January 1 of Year 4? C. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. D. Assuming that the equipment had been sold on January 3 of Year 4 for $410,485 instead of $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles

Q: An asset was purchased for $135,000 on January 1, Year 1 and originally estimated to have a useful…

A: The depreciation expense is charged on the fixed assets as a reduction on the value of the fixed…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $38,000. The…

A: Depreciation: The value of fixed asset gradually decreases or reduces over it's estimated useful…

Q: Determine the depreciation, for the year of acquisition and for the following year of a Rixed asset…

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

Q: Equipment was acquired at the beginning of the year at a cost of $280,000. The equipment was…

A: Depreciation is the gradual conversion of the cost of a  fixed asset into expense. The various…

Q: Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Equipment acquired on January 1, 2018 at a cost of $96,000, has an estimated estimated useful life…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight…

A: Annual depreciation (straight-line method) = (Cost of the assets - Residual value) / Life of the…

Q: Computer equipment was acquired at the beginning of the year at a cost of $52,325.00. The computer…

A: The correct answer is $16,554.

Q: Calculate the amount of depreciation to report during the year ended December 31 for equipment that…

A: Lets understand the basics.In straight line basis, depreciation gets calculated in equal installment…

Q: Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of 13 years and…

A: Straightline Depreciation = (Original Cost - Residual Value) / Useful Life

Q: Computer equlpment was acquired at the beginning of the year at a cost of $54,511 that has an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Equipment with a cost of $168,287 has an estimated residual value of $8,321 and an estimated life of…

A: Depreciation is the reduction in the value of asset over a period of time.

Q: Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was…

A: a. Depreciation expense for the first year = (Cost of the assets - salvage value)/ Life of the…

Q: Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the life of asset.…

Q: Computer equipment was acquired at the beginning of the year at a cost of $54,427 that has an…

A: Depreciation is charged on the depreciable fixed assets based on their useful life. Salvage value is…

Q: Equipment acquired on January 6 at a cost of $417390 has an estimated useful life of 17 years and an…

A: Depreciation expense: [Cost – Residual Value]/ useful life of the equipment [417390-68805]/17 years…

Q: Equipment acquired on January 6 at a cost of $360,550, has an estimated useful life of 12 years and…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: An asset was purchased for $101,000 on January 1, Year 1 and originally estimated to have a useful…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Equipment acquired on January 6 at a cost of $401,300 has an estimated useful life of 18 years and…

A: Annual depreciation (straight-line method) = (Cost of equipment - Residual value) / Life of the…

Q: Equipment acquired on January 8 at a cost of $151,210 has an estimated useful life of 16 years, has…

A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the…

Q: Equipment acquired on January 8 at a cost of $112,940 has an estimated useful life of 14 years, has…

A: Straight-line depreciation is a common method of calculating the depreciation expense of an asset…

Q: Equipment acquired on January 6 at a cost of $342,200 has an estimated useful life of 8 years and an…

A: The objective of the question is to calculate the depreciation expense for the first three years…

Q: Equipment acquired on January 3,20Y1, at a cost of $412,500, has an estimated useful life of 20…

A: Step 1:The computation of the amount of depreciation for the years 20Y1, 20Y2 and 20Y3 respectively…

Q: e on April 1 of the current fiscal year, which ends on December 31. When required, round your…

A: Answer :Depreciation expenses = (Equipment cost - Residual value) / Useful life Depreciation…

Q: Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment was…

A: Introduction: A record is often kept in the general ledger, but it can also be kept in a single…

Q: Disposal of fixed asset Equipment acquired on January 6 at a cost of $317,400 has an estimated…

A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…

Q: Equipment with a cost of $169,093 has an estimated residual value of $9,274 and an estimated life of…

A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…

Q: An asset was purchased for $124,000 on January 1, Year 1 and was originally estimated to have a…

A: The depreciation expense is charged on fixed asset as reduction in the value of fixed assets with…

Q: Equipment acquired on January 8 at a cost of 160,520$ has an estimated useful life of 16 years has…

A: The following transactions are journalized to evaluate the sale of equipment.

Q: Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8…

A: Depreciation Expense - Depreciation Expenses is charged to the fixed assets of the company. This is…

Q: Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $331,200 has an estimated…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Fixed assets…

Q: Equipment acquired on January 8 at a cost of $152,550 has an estimated useful life of 20 years, has…

A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the…

Q: Depreciation by Two Methods; Partial Years Knife Edge Company purchased tool sharpening equipment…

A: Depreciation :— It is the allocation of depreciable cost over the life of asset.    Depreciable cost…

Q: An asset was purchased for $118,000 on January 1, Year 1, and originally estimated to have a useful…

A: Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…

Q: Equipment acquired on January 6 at a cost of $417,390 has an estimated useful life of 17 years and…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $114,140 has an…

A: Straight-line method:- This method is used in amortization of the value of an asset into its number…

Q: Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on…

A: Solution a: Annual depreciation using SLM = (Cost - Salvage value) / useful life = ($262,200 -…

Q: Equipment was purchased at a cost of $55,000. The equipment had an estimated useful life of 5 years…

A: Gain or loss on fixed asset means the final money earned or incurred from an asset either at the end…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.