Jason Corp. bought equipment for $150,000 on January 1, 2018. Jason estimated the useful life to be 12 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2019, Jason decides that the business will use the equipment for a total of 14 years. What is the revised depreciation expense for 2019?
Q: General Accounting question
A: Step 1: Define Average Collection PeriodThe average collection period measures the average number of…
Q: Want to this question answer general Accounting
A: Step 1: Define Work-in-Process (WIP) Inventory CalculationThe Work-in-Process (WIP) Inventory…
Q: Answer? ? Financial accounting question
A: Step 1: Define Income Tax PayableIncome tax payable is the amount a taxpayer owes based on their…
Q: Correct option? ?
A: Debt-to-asset ratio = Total debt / Total assets0.80 = $400,000 / Total assetsTotal assets = $400,000…
Q: What is the weighted average of the company's debt ?
A: 1) WEIGHTED AVERAGE OF DEBT CONCEPT:- Weighted average of debt represents what portion of a…
Q: Provide correct answer please general accounting
A: Step 1: Definition of Gross ProfitGross profit is the difference between net sales revenue and the…
Q: Financial Accounting
A: Step 1: Introduction to cost of capitalCost of capital is the price a business pays to fund its…
Q: hi expert please help me subject-general accounting
A: Step 1: Definition of High-Low MethodThe high-low method is used to separate mixed costs into their…
Q: General Accounting 5.3
A: Concept of Work in Process (WIP) InventoryWork in Process (WIP) inventory represents the cost of…
Q: Fixed order quantity model?
A: Approach to solving the question: Detailed explanation: By balancing ordering and holding expenses,…
Q: Sub: general Accounting
A: Step 1: Define Payback PeriodThe payback period measures the time required for an investment to…
Q: Answer? ? Financial accounting
A: Capital Asset Pricing Model (CAPM) ExplainedCore Concepts:1. **CAPM** is a model that describes the…
Q: ???
A: Approach to solving the question:Freeform Detailed explanation: To determine how many kites Ocean…
Q: Acorn Construction (calendar-year-end C corporation) has had rapid expansion during the last half of…
A: To determine Acorn Construction's maximum cost recovery deduction, we need to consider MACRS…
Q: No Wrong Answer
A: Step 1: Manufacturing Expenditures are the expenditures which are incurred in manufacturing a…
Q: need this general accounting subjects solutions
A: Step 1: Definition of Return on Equity (ROE)Return on equity (ROE) is a profitability ratio, which…
Q: Need help this question
A: Step 1: Definition of Capital Turnover RatioCapital Turnover Ratio is the ratio of net annual sales…
Q: General Accounting
A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…
Q: What is the net cash flow from this sale ? General accounting
A: KEY CONCEPTS:1. CAPITAL GAIN/LOSS- This is the profit or loss made from selling an asset- It's…
Q: What is the variable overhead efficiency variance for the month
A: Step 1:First calculate the standard hours for actual output: Standard hours for actual output =…
Q: none
A: Step 1: Definition of Accounting EquationThe accounting equation serves as a basis for the balance…
Q: Need help
A: 1. Calculate the increase in net fixed assets:Increase in net fixed assets = End-of-year net fixed…
Q: What was the cost of goods sold?
A: Explanation of Cost of Goods Sold (COGS): Cost of Goods Sold represents the direct costs associated…
Q: During the year
A: Concept of Variable CostingVariable costing is a cost accounting method in which only variable…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Premium Redemptions LiabilityPremium redemptions liability refers to the…
Q: Hii tutor give me Answer
A: Concept of Factory OverheadFactory overhead refers to all indirect manufacturing costs incurred…
Q: General Accounting
A: Step 1: Define Present Value (PV)Present value (PV) is the amount that must be invested today to…
Q: During FY 2016 GM Manufacturing had total manufacturing costs are $470,000. Their cost of goods…
A: Concept of Total Manufacturing CostsTotal Manufacturing Costs refer to the total expenses incurred…
Q: Need answer
A: Detailed explanation:Given:Target Income, $ 120,000Total Fixed Costs, $ 150,000Contribution Margin…
Q: Accounts receivable balance:420000, average daily sales:10500
A: Explanation of Days Sales Outstanding (DSO): Days Sales Outstanding is a financial metric that…
Q: hello teacher please solve questions financial accounting
A: Step 1: Definition of DepreciationDepreciation refers to the systematic allocation of the cost of a…
Q: What was the accounts receivable turnover?
A: Step 1: Define Account Receivable TurnoverThe account receivable turnover ratio measures the ability…
Q: Help
A: Explanation of Net Income:Net income represents the final profit of a company after deducting all…
Q: Waiting for your solution
A: Step 1: Define Applied OverheadApplied overhead is the amount of overhead assigned to jobs based on…
Q: help me to solve this questions
A: We determine Reich Manufacturing Company's total current manufacturing costs using the formula:…
Q: GENERAL ACCOUNT
A: Step 1: Definition of Gross Profit PercentageGross profit margin is a profitability ratio that…
Q: Please give me answer general accounting question
A: Step 1: Definition of Cost-Volume-Profit (CVP) AnalysisCost-Volume-Profit (CVP) analysis helps…
Q: ?
A: Step 1: Analysis of information givenCash Paid to Suppliers = $145,000Beginning Accounts Payable…
Q: How much profit is it earning per share?
A: P/E= Price per Share/Earnings per Share (EPS)We are given:Stock price = $22P/E ratio =…
Q: Answer
A: Given: - **Average daily demand** = 65 units - **Lead time** = 8 days R = 65 \times 8 = 520…
Q: What is the Whistleblower Protection Act of 1989 (amended in 2011)?
A: The Whistleblower Protection Act of 1989 is a United States federal law that protects federal…
Q: Company B had an estimated 230,000 direct labor hours, $486,000 manufacturing overhead, and 27,000…
A: Concept of Manufacturing OverheadManufacturing overhead refers to the indirect costs associated with…
Q: General accounting
A: Required A: Shareholders' equity = Assets - LiabilitiesShareholders' equity = $12,500 -…
Q: expert of general accounting answer
A: 1. Understand the Leverage RatioThe leverage ratio is the ratio of a bank's total assets to its…
Q: Aide Industries is a division of a major corporation. Data concerning the most recent year appears…
A: Concept of SalesSales refer to the total revenue generated by a company from selling its goods or…
Q: Tulsa's gross profit percentage is: financial accounting
A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's net sales…
Q: Hii expert please given answer general Accounting
A: Step 1: Define Income Tax ExpenseIncome tax expense represents the total tax liability of a company…
Q: Hi expert please give me answer general accounting question
A: Let's break down the calculation step by step. Given Data: Daily sandwich production = 150Selling…
Q: Need help this question
A: Let's solve each case step by step using the simple interest formula:I=P×R×T I = Interest EarnedP =…
Q: Need answer
A: Step 1: Recall the general flow formula of work in process inventory.BeginningxxxAdd: Transferred…
What is the revised depreciation expense for 2019?
Step by step
Solved in 2 steps
- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.
- During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.
- Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.
- On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.Depreciation Methods On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively. Required: Compute depreciation expense for 2019 and 2020 using the (1) straight-line, (2) double-declining-balance, and (3) units-of-production methods of depreciation.In March 2019, Helen Carlon acquired used equipment for her business at a cost of 300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2019 for regular income tax purposes, what is the amount of the AMT adjustment? b. Draft a letter to Helen regarding the choice of depreciation methods. Helens address is 500 Monticello Avenue, Glendale, AZ 85306.
