Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year for $631,697, determine the gain or loss on the sale of the equipment. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

Q: omputer equipment was acquired at the beginning of the year at a cost of $63,7 e of 6 years.…

A: Answer :Cost of computer = $63,703 Residual value = $2,416 life = 6 years Depreciation per year…

Q: Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Equipment was acquired at the beginning of the year at a cost of $77,880. The equipment was…

A: Depreciation is a decrease in value of an asset during its life time. Depreciation is calculated by…

Q: Computer equipment was acquired at the beginning of the year at a cost of $62,250 that has an…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Computer equipment was acquired at the beginning of the year at a cost of $76,200 that has an…

A: 1. Depreciable Cost= Cost-Residual value2. Depreciation Rate using straight line = (1/Useful life) x…

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: Computer equipment was acquired at the beginning of the year at a cost of $57,100 that has an…

A: a. Depreciable Cost = Cost - Salvage Value b. Annual Straight Line Depreciation Rate = 1 / Useful…

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: Computer equipment was acquired at the beginning of the year at a cost of $60,177 that has an…

A: We have the following information: Cost of computer equipment = $60,177 Residual Value = $3,603…

Q: Equipment acquired on January 6 at a cost of $459,240, has an estimated useful life of 19 years and…

A: This Numerical Has Covered the Concept of Depreciation Accounting. The Straight Line Method of…

Q: Disposal of Fixed Asset Equipment acquired on January 8, 20Y1, at a cost of $607,500, has an…

A: Book value is the value of an asset according to its balance sheet account balance. For assets, the…

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: A truck acquired at a cost of $465,000 has an estimated residual value of $27,900, has an estimated…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Equipment with a cost of $148,651 has an estimated residual value of $8,247 and an estimated life of…

A: Depreciation: Reduction in value of asset over a period of time due to obsolescence, wear and tear…

Q: Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4…

A: DDB (Double Declining Balance0 is the method of depreciation that charged twice the depreciation…

Q: answer

A: a) Straight-Line DepreciationDepreciable Cost = $1,050,560 (cost) - $89,600 (salvage) =…

Q: A truck acquired at a cost of $430,000 has an estimated residual value of $25,300, has an estimated…

A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…

Q: Computer equipment was acquired at the beginning of the year at a cost of $57,500 that has an…

A: The objective of the question is to calculate the depreciable cost, the double-declining-balance…

Q: Equipment was acquired at the beginning of the year at a cost of $76,260. The equipment was…

A: Depreciation Expense = [Cost of the asset – Salvage Value] / Useful life Gain (Loss) on sale of the…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $172,000 has an estimated…

A: Depreciation is the allocation of cost of the asset over the useful life of the asset.

Q: Computer equipment was acquired at the beginning of the year at a cost of $60,010 that has an…

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

Q: A utility vehicle purchased by Knox industries should last 110,000 miles .  the accusation cost…

A: Unit of production depreciation method: Depreciation is calculated by dividing total acquisition…

Q: A Kubota tractor acquired on January 8 at a cost of $306,000 has an estimated useful life of 10…

A: Depreciation is charged due to wear and tear of assets. There are various method of charging…

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: Computer equipment was acquired at the beginning of the year at a cost of $48,125 that has an…

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

Q: Computer equipment was acquired at the beginning of the year at a cost of $69,375 that has an…

A: Depreciation Expense is an expense incurred on the fixed assets of the company. it is charged due to…

Q: Computer equipment was acquired at the beginning of the year at a cost of $55,699.00. The computer…

A: Depreciation under straight line method   =( Cost of assets- Residual value)/ useful life of assets…

Q: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…

A: Year Book value Depreciation Accumulated Depreciation Book value 1 $537,500 $119,444.4444 $119,444…

Q: Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was…

A: Double declining balance method : A double-declining balance method is a form of an accelerated…

Q: Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated…

A: There are different types of depreciation methods In this question, it has to be depreciation using…

Q: A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated…

A: Depreciation is a charge on the asset which is recorded as an expese on the income statement. There…

Q: Computer equipment was acquired at the beginning of the year at a cost of $62,544 that has an…

A: Depreciation as per straight line method  = (Cost - Residual value)/Useful life

Q: Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Equipment was acquired at the beginning of the year at a cost of $77,580. The equipment was…

A: Under straight-line method  Depreciation per Year =( Historical cost - Salvage Value)/Useful Life

Q: Instructions Equipment was acquired at the beginning of the year at a cost of $550,000. The…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

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.