Exercise 8 - 15A Revision of estimated useful life LO 8 - 7On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $61, 200. The equipment had a three-year estimated life with a $3,900 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,900. Required Compute the depreciation expense for each of the four years, Year 1-Year 4.

Exercise 8 - 15A Revision of estimated useful life LO 8 - 7On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $61, 200. The equipment had a three-year estimated life with a $3,900 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,900. Required Compute the depreciation expense for each of the four years, Year 1-Year 4.

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Description: Exercise 8 - 15A Revision of estimated useful life LO 8 - 7On January 1, Year 1, Poultry ProcessingCompany purchased a freezer and related installation equipment for $61, 200. The equipment had athree-year estimated life with a $3, 900 salvage value

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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Depreciation by Two Methods A Kubota tractor acquired on January 8 at a cost of $85,000 has an estimated useful life of 10 years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years by the straight-line method. First Year Second Year $fill in the blank 1 $fill in the blank 2 b. Determine the depreciation for each of the first two years by the double-declining-balance method. First Year Second Year $fill in the blank 3 $fill in the blank 4
CHAPTER 14 – DEPRECIATION CLASSWORK Student Name: Date: 1) A Dutch petroleum company purchased a barge for $1,300,000. The estimated life in 20 years, at which time it will have a salvage value of $200,000. Find (a) The annual amount of depreciation using the straight-line method (b) The book value at the end of 5 years 2) A bottle-capping machine costs $88,000, has an estimated life of 8 years, and has a scrap value of $16,000. Use the straight-line method of depreciation to find (a) The annual rate of depreciation (b) The annual amount of depreciation (c) The book value at the end of the first year 3) The new computer equipment at Capital Curb and Concrete has a cost of $14,500, an estimated life of 8 years, and a scrap value of $2100. Find (a) the annual depreciation and (b) the book value at the end of 4 years using the straight- line method of depreciation.
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QUESTION 7 Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of eight years has been depreciated using the straight-line method for two years. Assuming a revised estimated total life of five years and no change in the salvage value, the depreciation expense for year three would be $14,000. $11,200. $ 8,400. $18,667.
Exercise 10-13 (Algo) Revising depreciation LO C2 Apex Fitness Club uses straight-line depreciation for a machine costing $21,050, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
chapter 9 question 5 fill in all the blanks that need to be filled
"PR 10-2AComparing three depreciation methodsOBJ. 2Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip-ment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3.Instructions1.Determine the amount of depreciation expense for the three 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 three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:Depreciation ExpenseYearStraight- Line MethodUnits-of- Activity MethodDouble-Declining- Balance Method2.What method yields the highest depreciation expense for Year 1?3.What method yields the most depreciation over the three-year life of the equipment"
EX 10-9 Depreciation by two methods OBJ.2 A computer system acquired on January 1 at a cost of $35,000 has an estimated useful life of five years. Assuming that it will have no residual value, determine the depreciation for each of the first two years (a) by the straight-line method and (b) by the double-declining. balance method.
Problem 9-03A Sunland Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life(in years) Salvage Value Machinery $77,000 Jan. 1, 2012 10 $ 0 Forklift 36,000 Jan. 1, 2019 5 0 Truck 42,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,600. The truck was discarded on December 31.Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date…
PR 10-2A Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip- ment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. OBJ. 2 Instructions 1. Determine the amount of depreciation expense for the three 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 three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: Depreciation Expense Straight- Line Method Units-of- Activity Method Double-Declining- Balance Method Year
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