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.

Name: Exercise 8 - 15A Revision of estimated useful life LO 8 - 7On January
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
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

See similar textbooks

Similar questions

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
None
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
Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $213,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,600 in Year 2, 120,400 in Year 3, 135,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production Compute depreciation for each year (and total…
"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"
Exercise 10-2Marigold Co. purchased land as a factory site for $504,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $52,920 to raze the old buildings and sold salvaged lumber and brick for $7,938. Legal fees of $2,331 were paid for title investigation and drawing the purchase contract. Marigold paid $2,772 to an engineering firm for a land survey, and $85,680 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,890, and a liability insurance premium paid during construction was $1,134. The contractor’s charge for construction was $3,452,400. The company paid the contractor in two installments: $1,512,000 at the end of 3 months and $1,940,400 upon completion. Interest costs of $214,200 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the…
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.
Exercise 7-10A Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $38,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,620 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-1OA Part 2 2. Double-declining-balance. Depreciation expense e to search ASUS
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
Exercise 8-10A Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 8-3, 8-4 (The following information applies to the questions displayed below.) Exact Photo Service purchased a new color printer at the beginning of Year 1 for $35,350. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,773,800 pages. Actual print production for the four years was as follows: 554,300 484,000 377,200 387,300 Year 1 Year 2 Year 3 Year 4 Total 1,802,800 The printer was sold at the end of Year 4 for $4,050. Exercise 8-10A Part b b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.) Depreciation Expense Year 1 Year 2 Year 3 Year 4 24 Total accumulated depreciation
Exercise 7-10A Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $38,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,620 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-1OA Part 1 1. Straight-line. Depreciation expense o search ASUS