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Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car $ $ 3,300 30,275 ****** $ 12,975 inol

Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car $ $ 3,300 30,275 ****** $ 12,975 inol

FINANCIAL ACCOUNTING
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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28 Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car 1-b. For each transaction, record the adjusting entry on December 31, 2023. View transaction list < Journal entry worksheet 2 1 Pute 3 Record annual depreciation on equipment. $ 3,300 $ 30,275 $ 12,975 Drau 10 of 11 www Next
Transcribed Image Text:28 Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car 1-b. For each transaction, record the adjusting entry on December 31, 2023. View transaction list < Journal entry worksheet 2 1 Pute 3 Record annual depreciation on equipment. $ 3,300 $ 30,275 $ 12,975 Drau 10 of 11 www Next
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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