mated useful life of 12 years, and is d the amount of the annual depreciation. (b) Determine the book value at the end of the seventh year of use. (c) Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $12,000, determine the depreciation expense for each of the remaining six years. PE 10-5A Capital and revenue expenditures On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its delivery vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries for the transmission and GPS system expenditures. -5 p. 504 OBJ. 2 PE 10-5B Capital and revenue expenditures On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures. 5 p. 504 OBJ. 2 5 p.506 PE 10-6A Sale of equipment OBJ. 3 Equipment was acquired at the beginning of the year at a cost of $600,000. The equip- ment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000. a. What was the depreciation for the first year? b. Assuming that the equipment was sold at the end of the second year for $480,000, determine the gain or loss on the sale of the equipment. C. Journalize the entry to record the sale.
mated useful life of 12 years, and is d the amount of the annual depreciation. (b) Determine the book value at the end of the seventh year of use. (c) Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $12,000, determine the depreciation expense for each of the remaining six years. PE 10-5A Capital and revenue expenditures On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its delivery vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries for the transmission and GPS system expenditures. -5 p. 504 OBJ. 2 PE 10-5B Capital and revenue expenditures On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures. 5 p. 504 OBJ. 2 5 p.506 PE 10-6A Sale of equipment OBJ. 3 Equipment was acquired at the beginning of the year at a cost of $600,000. The equip- ment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000. a. What was the depreciation for the first year? b. Assuming that the equipment was sold at the end of the second year for $480,000, determine the gain or loss on the sale of the equipment. C. Journalize the entry to record the sale.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:mated useful life of 12 years, and is d
the amount of the annual depreciation. (b) Determine the book value at the end of the
seventh year of use. (c) Assuming that at the start of the eighth year the remaining life
is estimated to be six years and the residual value is estimated to be $12,000, determine
the depreciation expense for each of the remaining six years.
PE 10-5A Capital and revenue expenditures
On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its
delivery vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize
the entries for the transmission and GPS system expenditures.
-5 p. 504
OBJ. 2
PE 10-5B Capital and revenue expenditures
On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for
an air filter for one of its delivery trucks. Journalize the entries for the new lift and air
filter expenditures.
5 p. 504
OBJ. 2
5 p.506
PE 10-6A
Sale of equipment
OBJ. 3
Equipment was acquired at the beginning of the year at a cost of $600,000. The equip-
ment was depreciated using the double-declining-balance method based on an estimated
useful life of 16 years and an estimated residual value of $60,000.
a.
What was the depreciation for the first year?
b. Assuming that the equipment was sold at the end of the second year for $480,000,
determine the gain or loss on the sale of the equipment.
C. Journalize the entry to record the sale.
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