es On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Cost Estimated Residual Value Estimated Useful Life (in Years) $ 100,000 N/A N/A Building Equipment Vehicles 500,000 240,000 none 25 10% of cost $ 12,000 8 8 Total $ 1,000,000 On June 29, 2025, equipment Included in the March 31, 2024, purchase that cost $100,000 was sold for $80,000. Herzog uses the straight-line depreciation method for buildings and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute depreciation expense on the building, equipment, and vehicles for 2024. Note: Do not round intermediate calculations. Depreciation Expense Building Equipment Vehicles
es On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Cost Estimated Residual Value Estimated Useful Life (in Years) $ 100,000 N/A N/A Building Equipment Vehicles 500,000 240,000 none 25 10% of cost $ 12,000 8 8 Total $ 1,000,000 On June 29, 2025, equipment Included in the March 31, 2024, purchase that cost $100,000 was sold for $80,000. Herzog uses the straight-line depreciation method for buildings and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute depreciation expense on the building, equipment, and vehicles for 2024. Note: Do not round intermediate calculations. Depreciation Expense Building Equipment Vehicles
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:es
On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total
purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows:
Asset
Land
Cost
Estimated
Residual Value
Estimated
Useful Life (in
Years)
$ 100,000
N/A
N/A
Building
Equipment
Vehicles
500,000
240,000
none
25
10% of cost
$ 12,000
8
8
Total
$ 1,000,000
On June 29, 2025, equipment Included in the March 31, 2024, purchase that cost $100,000 was sold for $80,000. Herzog uses the
straight-line depreciation method for buildings and equipment and the double-declining-balance method for vehicles. Partial-year
depreciation is calculated based on the number of months an asset is in service.
Required:
1. Compute depreciation expense on the building, equipment, and vehicles for 2024.
2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the sale of equipment.
3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2025.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute depreciation expense on the building, equipment, and vehicles for 2024.
Note: Do not round intermediate calculations.
Depreciation
Expense
Building
Equipment
Vehicles
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