← Gulfcoast, Inc. purchased a van on January 1, 2019, for $830,000. Estimated life of the van was five years, and its estimated residual value was $94,000. Gulfcoast uses the straight-line method of depreciation. Calculate the book value of the van at the end of 2019. OA. $778,125 B. $682,800 C. $674,375 OD. $736,000
Q: On January 1, 2021, Dunbar Echo Company sells a machine for $23,200. The machine was originally…
A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to…
Q: depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020,…
A: Under the Straight Line Method (SLM), a fixed portion of the asset is depreciated every year till…
Q: On January 1, 2020, Shapiro Inc. purchased a machine for $115,000. Shapiro depreciated the machine…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2019.It made the…
A: Depreciation is the reduction in value in fixed assets over a period of time. This reduction is…
Q: uary 1, 2019, that originally cost $150,000 is being depreciated on a straight-line basis over an…
A: The Correct Answer is option d.($13,875) Depreciation charged under original life for 2019 and 2020…
Q: On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations.…
A: Double declining balance method is the double rate of depriciation charged in straight line…
Q: Sorter Company purchased equipment for $380,000 on January 2, 2019. The equipment has an estimated…
A: Depreciation on an asset can be calculated using different methods: Straigh line method Sum of years…
Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…
A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000
Q: Ponderosa Farms purchased some equipment on January 1, 2020 for $12,600. The equipment has an…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Crane Company purchased a depreciable asset for $680000 on April 1, 2018. The estimated salvage…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: On January 1, 2019, Beldon Inc. purchased a new machine for $60,000. Its estimated useful life is…
A: Double declining balance method is an accelerated method of depreciation where asset is depreciated…
Q: On January 1, 2018, Check Co. bought a machine for $15,000. Residual value was estimated to be…
A: The answer is as fallows
Q: d book value at December 31, 2022 using the straight-line method and the double-declining-balance…
A: 1) a. Straight Line Method Depereciation P.a = [(Original Cost - Residual value (if any ) ] /…
Q: n January 1, 2021, Gleason Company purchased new machinery for $ 333,000. The new machine was…
A: The book value of an asset is calculated as cost less accumulated depreciation. The accumulated…
Q: A company purchased a truck for $35,000 on January 1, 2019. The truck is estimated to have a useful…
A: The straight-line method of depreciation is the simplest method of calculating depreciation.
Q: On January 1, 2019, Williams Company purchased a copy machine. The machine costs $160,000, its…
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…
Q: Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The…
A: 1. Following are the calculation of depreciation expense:
Q: N company purchased a compilation system on jan 1, 2019 at a cash cost of $25,000. The estimated…
A: Solution:- Calculation depreciation using double declining balance depreciation method as follows:-…
Q: cember 31, 2021, Jaco uld Jacob Inc. record o
A: Answer : Depreciation per year = ($48,000 - $8000) / 8 = $5,000 Truck price : On 31 Dec.2019…
Q: Camping World purchased a new delivery truck on January 1, 2023. The truck has a cost of $44,400, an…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Berkshire Corporation purchased a copying machine for $9,800 on January 1, 2019. The machine's…
A: Depreciable value=$9,800-$1,175=$8,625
Q: 10. Gingerbread Corp purchased a refrigerated truck on January 1, 2019 for $70,000. The company…
A: Depreciation per year=Cost-Salvage valueUseful life=$70,000-$20,0005=$10,000
Q: Tamarisk Company purchased a computer for $9,280 on January 1, 2019. Straight-line depreciation is…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: On January 2, 2018 Careful Corporation purchased security equipment for $44,000 cash. The equipment…
A: From January 2, 2018 to December 31, 2020 = 3 years Annual depreciation = ($44,000 - $4,000) / 8…
Q: Rayya Company purchases a machine for $126,000 on January 1, 2021. Straight-line depreciation is…
A: The objective of the question is to calculate the depreciation for the partial year and to record…
Q: Crane Company purchased a machine on July 1. 2020, for $900000. The machine has an estimated useful…
A: The declining balance method is a method of charging the depreciation in which the higher amount of…
Q: Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The…
A: Depreciation is the non-cash expense which is reported in the income statement of the entity. It is…
Q: On January 1, 2020, Grand Manufacturing purchased a machine for $370,000 that it expected to have a…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Legislate Company purchased equipment for $80,000 on January 1, 2017, and will use the…
A: Under the double declining balance method of depreciation, rate of depreciation is taken at a twice…
Q: On January 1, 2015, Minco Coportation purchased, for $100,000, equipment having a useful life of the…
A: Depreciation = Total Cost of Equipment - Salvage ValueUseful life
Q: Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Speedbag, Incorporated purchased equipment at a cost of $60,000 on July 1, 2023. The expected useful…
A: Depreciation expense :— It is the allocation of depreciable cost of an asset over the estimated…
Q: Problem: On January 1, 2020, CCH Inc. exchanged its equipment for a delivery truck. CCH’s equipment…
A: The exchange has commercial substance: An exchange is deemed to be having commercial substance when…
Q: Depreciation for Partial Periods: Hathaway Company purchased a copying machine for $8,700 on…
A: Depreciation expense is an expense which records on expense side under the income statement and…
Q: Gulfcoast, Inc. purchased a van on January 1, 2019, for $820,000. Estimated life of the van was five…
A: Working Note: 1. Depreciation of 2019 - straight line method = (Purchase amount - residual value) /…
Q: 10) Hi-Crest Company purchased a machine on January 1, 2019, for $300,000. The machine has an…
A: The depreciation expense is charged on the fixed assets as reduction in the cost of fixed assets…
Q: Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on…
A: Original price of car = $22,300 Estimated life = 3 years Residual value = $4,000 Annual depreciation…
Q: On January 1, 2014, Tanaka, Inc. purchased equipment for $27,000. Tanaka uses straight-line…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck…
A: Depreciation is an accounting method used to allocate the cost of tangible assets over their useful…
Q: On January 1, 2018, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an…
A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…
Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…
A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400
Q: n Jan 1, 2019, Tuesday company purchased a delivery vehicle costing $40,000. The vehicle has an…
A: Accumulated depreciation is the cumulative depreciation of an asset up to a point in its life.…
Q: Schager Company purchased a computer system on January 1, 2019, at a cash cost of $25,000. The…
A: Double declining Depreciation = Cost of the asset x Depreciation rate x 2 Depreciation rate =…
Q: Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage…
A: Solution: Annual depreciation on asset = (Cost - Salvage value) / Useful life = ($726,000 - $72,000)…
Q: On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations.…
A: One of the method to compute the depreciation on an asset is double declining balance method. Under…
Q: Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used,…
A: Given, Cost of asset = $8,160 Residual value before change = $1,020 Residual value after change =…
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- Assume that Bloomer Company purchased a new machine on January 1, 2017, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2019, Bloomer discovered that the machine would not be useful beyond December 31, 2022, and estimated its value at that time to be $2,000. Required: 1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2017 to 2022. If necessary, round any depreciation calculations to the nearest dollar.Kavya Company purchased a machine on October 1, 2017, for $80,000. At the time of acquisition, the machine was estimated to have a useful life of five years and an estimated salvage of $5,000. The company has recorded monthly depreciation using the straight-line method. On April 1, 2019, the machine was sold for $47,500. What should be the loss recognized from the sale of the machine? O $7,500 O $5,000 O $10,000 O $2,500Archie Company purchased a framing machine for $52,000 on January 1, 2024. The machine is expected to have a four-year life, with a residual value of $7,000 the end of four years. Using the straight-line method, depreciation for 2025 and book value on December 31, 2025, would be: Multiple Choice O O $11,250 and $29,500, respectively $13,000 and $26,000, respectively $13,000 and $19,000, respectively $11,250 and $22,500, respectively
- Watts Company purchased equipment in 2013 for $90,000 and estimated a $6,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2019, there was $58,800 in the accumulated depreciation account for this equipment using straight-line depreciation. On March 31, 2020, the equipment was sold for $24,000. Prepare the journal entries required on March 31, 2020.7 The accounts payable balance at the beginning of the year was $85,000. The company purchased $380,000 worth of goods on account, and the ending balance of the payables account was $70,000. What were the total payments on account? Multiple Choice $450,000 $395,000 $535,000 $465,000Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $16000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used? O $16740. $13540. $28140. $33480.
- Can you also show me how to do this one? 12. XYZ Co. purchased new trucks at the beginning of 2018 for $600,000. The trucks had an estimated life of four yearsand an estimated residual value of $50,000. They use straight-line depreciation. At the beginning of 2019, XYZ sold thetrucks for $480,000 and purchased new trucks for $700,000.A. Calculate book value of the trucks at the end of 2018.B. Calculate the gain (loss) on the sale of the trucks at the beginning of 2019. Calculate the amount and indicate if it is a gain or a loss.Martin Corporation acquired a truck on January 1, 2016, at a cost of $84,000. The truck was originally estimated to have a salvage value of $4,000 and an estimated useful life of 8 years. Depreciation had been recorded through December 31, 2018, using the straight-line method. On January 1, 2019, the estimated salvage value was revised to $6,000, and the useful life was revised to a total of 7 years. Required: (Show all calculations) Calculate the annual depreciation expense for the years 2016 through 2018. a. b. Calculate the book value of the truck at December 31, 2018. с. Calculate the depreciation expense per year after revision. d. If the truck is sold at a gain, how is the statement of financial position affected?Depreciation calculation methods Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $1,000,000 in January 2019. The company's estimated useful life of this heavy equipment is 8 years, and the estimated salvage value is $200,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2019, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2021, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2021, the third year of the equipment's life.
- Newman Co. purchased CNC router cutting and engraving machinery at a cost of $320,000 in January 2019. The company's estimated useful life of this high tech equipment is 5 years, and the estimated salvage value is $48,000. Using the straight-line method, the net book value at December 31, 2021, after the third year of the machinery's life, would be: Multiple Choice $128,000. $163,200. $211,200. $156,800.On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the straight-line method, the amount of depreciation that should be recorded during 2021, is approximately O $3,000 O $10,000 O $11,000 O $30,000Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $40,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $10,500. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $9,875 b. $7,275 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $9,875. In addition, Swann had previously recorded a revaluation surplus related to this machine of $5,000. What journal entries are required to record the sale?
