• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a total of six years with no residual value. What depreciation would June record for the year 2022 on this equipment? O $108,333. O $106,667. O $122,500. O None of the above is correct.

• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a total of six years with no residual value. What depreciation would June record for the year 2022 on this equipment? O $108,333. O $106,667. O $122,500. O None of the above is correct.

Name: • June Corporation purchased equipment on 1/1/20 for $650,000. In 202
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: • June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, Junedepreciated the asset on a straight-line basis with an estimated useful life of 8 years and a$10,000 residual value. In 2022, due to changes in technology, June rev

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Provide the journal entries necessary to account for all the above transactions and events up to 1…

A: Journal entries is the recording of the business transactions in a manner which gives dual effect of…

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: On October 1, 2021, Bonita Company places a new asset into service. The cost of the asset is $129000…

A: Under straight line method of depreciation, the depreciation is calculated by dividing the…

Q: On January 1, 2019, Allen Corp. purchased equipment for $760,000. At the time, it was estimated that…

A: Straight-line depreciation evenly distributes the cost of an asset over its useful life, subtracting…

Q: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the…

A: The expense of an item is dispersed equally over its useful life by straight-line…

Q: Sheridan Corporation bought equipment on January 1, 2021. The equipment cost $354000 and had an…

A: Under Straight line method, depreciable amount if an asset is evenly spread over its life.…

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: Alex Company purchased a lathe on January 1, 2022, at a cost of $45,000. At the time of purchase,…

A: Straight-line depreciation is a method of allocating the cost of an asset evenly over its estimated…

Q: On October 1, 2021, Bonita Company places a new asset into service. The cost of the asset is $115000…

A: The straight-line method of depreciation is a common way of allocating the cost of the asset to the…

Q: Sheridan Ltd. has a December 31 year end. On April 2, 2024, Sheridan purchased a piece of equipment…

A: The fixed assets are held by the organization for a long term that facilitate operations of the…

Q: On March 1, 2020, Peggy's Cafe acquired equipment for $220.000. The estimated life of the equipment…

A: Activity-based depreciation method is also called a unit-of-production method. Depreciation is…

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: year life and $10500 salvage value at the end of its useful life. What is the depreciation expense…

A: Straight line method of depreciation is the easiest method of depreciation where depreciation for…

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: Concord Corporation purchased a truck at the beginning of 2020 for $109800. The truck is estimated…

A: Units of activity depreciation allocates costs based on the actual usage or output of an asset,…

Q: On June 1. 2018. KJ Corporation acquired equipment for $360,000. The estimated useful life of th…

A: Depreciation is the reduction in the value of fixed assets due to the usage and passage of time or…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June
depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a
$10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a
total of six years with no residual value. What depreciation would June record for the year 2022
on this equipment?
O $108,333.
O $106,667.
O $122,500.
O None of the above is correct.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

3)On November 1, 2021, Ning Corp places a new asset into service. The cost of the asset is $65,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Ning Corp uses the straight-line method of depreciation? a)$9,000 b)$16,000 c)$2,667 d)$4,000
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.
On January 1, 2020, Coronado Industries purchased a new machine for $4290000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $150000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Coronado's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? O $4140000 O $2634000 O $2726000 O $3462000
s
Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $170,000. The residual value of the equipment was estimated to be $20,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $54,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. + Complete this question by entering your answers in the tabs below. Required 1 No Prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. General Journal 1 Required 2 No Event 1 1 Required 1 Required 2 Answer is not complete. 10 Event 1 Cash Accumulated depreciation-equipment Loss…
Dolores Corporation acquired Machine costing P500,000 on August 1, 2021. The estimated useful life of the equipment is 5 years and its estimated residual value is P20,000. What was the depreciation expense of this machine for the year 2022?
← 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
(a) Situation 1: Cheyenne Corporation purchased electrical equipment at a cost of $11,500 on June 2, 2020. From 2020 through 2023, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $1,900 residual value. After more experience and before recording 2024's depreciation, Cheyenne revised its estimate of the machine's useful life downward from a total of 10 years to 8 years, and revised the estimated residual value to $1,900. On April 29, 2025, after recording part of a year's depreciation for 2025, the company traded in the equipment for a newer model, and received a $3,700 trade-in allowance, even though the equipment's fair value was only $2,600. The new asset had a list price of $14,200 and the supplier accepted $10,500 cash for the balance. The new equipment was depreciated on a straight-line basis, assuming a seven-year useful life and a $1,130 residual value. Determine the amount of depreciation expense…