Need Step by step answer Kakashi Company was started on January 1, 2015, when itissued common stock for $20,000 cash. Also on January 1,2015, the company purchased office equipment that cost$18,000 cash. The equipment was delivered under terms ofFOB shipping point, and the transportation cost was$1,500. The equipment had a six-year useful life and a$1,800 expected salvage value.Using straight-line depreciation, determine the amount ofdepreciation expense and the amount of accumulateddepreciation that would appear on the December 31, 2017,financial statements.a) $2,950 / $8,850b) $3,450 / $10,350c) $3,300 / $9,900d) $3,200 / $9,600

Explanation of Straight-Line Depreciation:Straight-line depreciation is a method of allocating the…

Answered: Kakashi Company was started on January…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

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Frey, Inc. purchased a machine for $600,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $100,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be: Select one: a. $250,000 Ob. $350,000 c. $280,000 Od. $320,000 $450,000
On January 1, 2017, Bushong Company purchased equipment at a cost of $12,600. The equipment had an estimated useful life of 6 years or 30,000 hours. The equipment will have a $1,200 salvage value at the end of its life. The depreciation expense for the year ending December 31, 2017, using the straight-line method would be a.$471. b.$1,900. c.$1,883. d.$475.
Antigua Company purchased a depreciable asset for $45,000 on October 1, 2015. The estimated salvage value is $9,000, and the estimated useful life is 6 years. The straight-line method is used for depreciation. What is the book value on July 1, 2017 when the asset is sold?
Novak Corporation purchased machinery on January 1, 2017, at a cost of $270,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2017 $ $1 2$ 2018 2019 % 2020 % DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Years Book Value Beginning of Year x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2017 $ 2018 2019 2020 9,750 * Depreciation expense for 2020 under Double declining-balance is adjusted so that ending book value is equal to salvage…
Kingbird Co. purchased machinery for $170,100 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, a salvage value of $14,700, production of 76,400 units, and working hours of 40,300. In 2017, the company used the machinery for 13,702 hours and the machinery produced 14,516 units. Compute the depreciation under the working hours method.
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On January 1, 2014, McMahan Company purchased equipment at a cost of $420,000. The equipment was estimated to have a useful life of 5 years and a salvage value of $60,000. McMahan uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2017? a.$336,000 b.$240,000 c.$360,000 d.$280,000
Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. (A) Calculate the book value at the time of the revision (January 1, 2017). (B) Determine the depreciation expense for 2017
On July 1, 2014, Nowton Co. purchased machinery for $168,000. Salvage value was estimated to be $7,000. The machinery will be depreciated over ten years using the double-declining balance method. If depreciation is computed on the basis of the nearest full month, Nowton should record depreciation expense for 2015 on this machinery of a. $26,880. b. $28,980. c. $30,240. d. $30,590.
Maserati Corporation purchased a new machine for its assembly process on August 1, 2014. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year- end is December 31. Instructions: Compute the depreciation expense under the following methods. (a) Straight-line depreciation. Sum-of-the-Years'-Digits Method Double-Declining Balance Method
(Depreciation Computations—Four Methods) Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31.InstructionsCompute the depreciation expense under the following methods. Each of the following should be considered unrelated.(a) Straight-line depreciation for 2017.(b) Activity method for 2017, assuming that machine usage was 800 hours.(c) Sum-of-the-years’-digits for 2018.(d) Double-declining-balance for 2018.
Matile Co. purchased machinery that was installed and ready for use on January 3, 2012, at a total cost of $115,000. Salvage value was estimated at $15,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2013, Matile should record depreciation expense on this machinery of Group of answer choices $24,000. $27,600. $30,000. $46,000.

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