Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four-year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects themachine to operate for a total of 11,000 hours over its four-year life.Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.)DepreciationExpenseStraight-lineDouble-declining-balanceActivity-based

Answer 1) Calculation of Depreciation expense using Straight Line Method Depreciation expense for…

Answered: Mountain View Resorts purchased…

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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On April 1, 2021, Parks Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a residual value of $6,000. Record the depreciation for office equipment purchased on March 31, 2018 for $24,000 having no residual value sold on September 30, 2021 , depreciated over a five-year life using the straight-line method, with depreciation based on months in service. Prepare the journal entries to record 2021 depreciation and the sale of the equipment. Please don't give image based answer..thanku
Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $175,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $48,000. 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: D 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 Assuming that Howarth had instead used the double-declining-balance method, 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. Do not roun intermediate calculation. Round your final answers to the…
On July 31, 2021, John Deere Manufacturing Company purchased a machine that cost $1,200,000, with an estimated residual value of $58,000, and an estimated useful life of ten years. The machine is being depreciated on a straight-line basis. At the end of the second year, what is the total amount of depreciation expense reported on the Income Statement and the total amount of accumulated depreciation reported on the Balance Sheet? (Round final answers to whole dollars) Depreciation Expense Accumulated Depreciation
Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,600 units in 2021 and 2,050 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers to nearest whole dollar.) Depreciation Expense 2021 2022 2025
On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual value is $7,000. The machine is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 41,000; units produced in 2019, 36,000). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate depreciation for 2018 and 2019 using sum-of-the-years' digits. 2018 2019 Sum-of-the-years' digits depreciation Rate per Year Depreciable Base X X X = = Required 5 Depreciation Expense
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…
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Skysong Corp. purchased machinery for $312,900 on May 1, 2025. It is estimated that it will have a useful life of 10 years, salvage value of $15,900, production of 237,600 units, and working hours of 25,000. During 2026, Skysong Corp. uses the machinery for 2,650 hours, and the machinery produces 27,000 units. From the information given, compute the depreciation charge for 2026 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) (b) (c) (d) Straight-line Units-of-output Working hours Sum-of-the-years'-digits (e) Declining-balance (use 20% as the annual rate) $ $ $ GA GA
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On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $21,900. The drill press is expected to last 10 years and has a residual value of $5.100. During its 10- year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,500 and 75,000 units, respectively, were produced. Required: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.) 2018 2019 Depreciation Book Values

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