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How can i solve task 20 question 1?

How can i solve task 20 question 1?

FINANCIAL ACCOUNTING
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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How can i solve task 20 question 1?

Meeting 7.pdf (page 4 of 5) Q Search 2) Gain or loss on asset sale: Assume that on December 31, 2021, Smeets Printing sells the machine to another company for €1,100,000. At the disposal date, calculate the cumulative depreciation expense and the net book value of the machine for each of the depreciation methods. Prepare the necessary journal entries to record the sale under the different depreciation methods. Task 20 Some MC questions to practice fixed assets 1. A company purchased factory equipment for €2,800,000 in January 2019. It is estimated that the equipment will have a €280,000 residual value at the end of its 5-year useful life. If the company uses the declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after the purchase is: A) €672,000 B) €1,008,000 C) €1,120,000 D) €483,840 2. A plant asset was purchased some years ago on January 1 for €180,000 with an estimated residual value of €30,000 at the end of its useful life. The current year's Depreciation Expense is €15,000, calculated using the straight-line method, and the balance of the Accumulated Depreciation account at the end of the year is €90,000. The remaining useful life of the plant asset is: A) 10 years MacBook Air
Transcribed Image Text:Meeting 7.pdf (page 4 of 5) Q Search 2) Gain or loss on asset sale: Assume that on December 31, 2021, Smeets Printing sells the machine to another company for €1,100,000. At the disposal date, calculate the cumulative depreciation expense and the net book value of the machine for each of the depreciation methods. Prepare the necessary journal entries to record the sale under the different depreciation methods. Task 20 Some MC questions to practice fixed assets 1. A company purchased factory equipment for €2,800,000 in January 2019. It is estimated that the equipment will have a €280,000 residual value at the end of its 5-year useful life. If the company uses the declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after the purchase is: A) €672,000 B) €1,008,000 C) €1,120,000 D) €483,840 2. A plant asset was purchased some years ago on January 1 for €180,000 with an estimated residual value of €30,000 at the end of its useful life. The current year's Depreciation Expense is €15,000, calculated using the straight-line method, and the balance of the Accumulated Depreciation account at the end of the year is €90,000. The remaining useful life of the plant asset is: A) 10 years MacBook Air
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