InstructionsEquipment acquired on January 6 at a cost of $532,255, has an estimated useful life of 19 years and an estimated residual value of $60,010.A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?B. What was the book value of the equipment on January 1 of Year 4?C. Assuming that the equipment was sold on January 3 of Year 4 for $441,935, journalize the entry to record the sale. Refer to the Chart ofAccounts for exact wording of account titles.D. Assuming that the equipment had been sold on January 3 of Year 4 for $473,200 instead of $441,935, journalize the entry to record the sale.Refer to the Chart of Accounts for exact wording of account titles.A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?Year 1 depreciation expense$Year 2 depreciation expenseYear 3 depreciation expense$$B. What was the book value of the equipment on January 1 of Year 4? $X

A. Computation of the annual amount of depreciation for Years 1-3: Using Straight-line method,…

Answered: Instructions Equipment acquired on…

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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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $188,400. The equipment was expected to have a useful life of four years, or 4,800 operating hours, and a residual value of $15,600. The equipment was used for 1,680 hours during Year 1, 1,008 hours in Year 2, 1,344 hours in Year 3, and 768 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four 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 four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the…
Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for $70,200. The equipment was expected to have a useful life of three years or 4,860 operating hours, and a residual value of $2,160. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 $fill in the blank 3b987ff9206ffcf_1 Year 2 $fill in the blank 3b987ff9206ffcf_2 Year 3 $fill in the blank 3b987ff9206ffcf_3 2. What is the book value of the equipment on January 1, Year 4?$fill in the blank 3b987ff9206ffcf_4 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Cash Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Loss on Sale of Equipment Loss on Sale of Equipment Equipment Equipment 4. Assuming that the equipment is sold on…
Calculation of Book Value On January 1, 20--, a depreciable asset was acquired for $5,760. The asset has an estimated useful life of four years (48 months) and no salvage value. Use the straight-line depreciation method to calculate the book value as of July 1, 20--. $ 120 X %24
An asset was purchased for $112,000 on January 1, Year 1 and originally estimated to have a useful life of 11 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $3,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$22,613.64 b.$23,113.64 c.$23,613.64 d.$21,613.64
Records show the following information for a plant asset purchased on October 1 of Year 1. Cost $ 330,000 Salvage Value $ 39,000 Purchase Date October 1 Useful Life 6 years Calculate depreciation expense for Year 1 and Year 2 for the year ended December 31. Depreciation expense for Year 1 for the year ended December 31 Depreciation Method Straight-line Depreciation expense for Year 2 for the year ended December 31
Instructions Equipment acquired on January 8 at a cost of $137,550 has an estimated useful life of 16 years, has an estimated residual value of $9,550, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fifth year? b. Assuming that the equipment was sold on April 1 of the sixth year for $90,510, journalize the entries to record (1) depreciation for the 3 months until the sale date and (2) the sale of the equipment.
Ind
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An asset was purchased for $143,000 on January 1, Year 1 and originally estimated to have a useful life of 9 years with a residual value of $11,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,600. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$27,044.44 b.$28,544.44 c.$28,044.44 d.$29,044.44
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Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $161,250, has an estimated useful life of 20 years, has an estimated residual value of $8,050, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for 123,390. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

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