Multiple Choice Question On October 1, year 1, Kirby Corp. purchased equipment for $100,000. The equipment has a useful life of 5 years with no residual value. Kirby uses the straight-line method of depreciation. The partial year depreciation for year 1 is $2,500 O $20,000 O $5,000 O $10,000 a Radio lowing Ca -$ is the pa 4 years

Multiple Choice Question On October 1, year 1, Kirby Corp. purchased equipment for $100,000. The equipment has a useful life of 5 years with no residual value. Kirby uses the straight-line method of depreciation. The partial year depreciation for year 1 is $2,500 O $20,000 O $5,000 O $10,000 a Radio lowing Ca -$ is the pa 4 years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Disposal of Plant Asset Ben Company has a used executive charter plane that originally cost $1,000,000. Straight-line depreciation on the plane has been recorded for six years, with a $100,000 expected salvage value at the end of its estimated eight-year useful life. The last depreciation entry was made at the end of the sixth year. Eight months into the seventh year, Ben disposes of the plane. Required Prepare journal entries to record:a. Depreciation expense to the date of disposal.b. Sale of the plane for cash at its book value.c. Sale of the plane for $300,000 cash.d. Sale of the plane for $220,000 cash.e. Destruction of the plane in a fire. Ben expects a $210,000 insurance settlement. General Journal Reference Description Debit Credit a. To record depreciation expense for 8 months. b. Cash To record sale of airplane. c. Cash Airplane To record sale of airplane. d. Cash…
Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes: Cost $ 25,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Duncan uses the double-declining balance (DDB) depreciation method, answer the following question:Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)? Answer- $ ___
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Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $63,990. The equipment was expected to have a useful life of 3 years, or 5,400 operating hours, and a residual value of $1,890. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining- balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 Year b. Units-of-activity method Year 1 Year 2 Year 3 Year 4 Year Year 1 Year 2 Amount c. Double-declining-balance method Year 3 3000 Year 4 Amount 00000000
Required information Problem 7-5B (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $128,000 including installation. The company estimates the equipment will have a residual value of $32,000. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year 1234 Hours Used 2,100 1,900 1,900 3,300 Problem 7-5B (Algo) Part 1 Required: 1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) QUICK COPY Depreciation Schedule-Straight-Line End of Year Amounts Year Depreciation Accumulated Book Value Expense Depreciation 1 2 3 4 Total
Depreciation by three methods; partial years Layton Company purchased tool sharpening equipment on October 1 for $44,550. The equipment was expected to have a useful life of 3 years or 5,400 operating hours, and a residual value of $1,350. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method Year Amount Year 1 $fill in the blank 5 Year 2 $fill in…
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Ex. 2 Conroy Company purchased a machine at a cost of $90,000. The machine is expected to have a $5,000 salvage value at the end of its 5-year useful life. Instructions Compute annual depreciation for the five using the (a) Straight-line method. (b) double-declining-balance method. years
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Equipment acquired on January 8 at a cost of $147,550 has an estimated useful life of 16 years, has an estimated residual value of $7,550, and is depreciated by the straight-line method. Question Content Area a. What was the book value of the equipment at December 31 the end of the fourth year?$fill in the blank ca8b2603ffe3f98_1 Question Content Area b. Assume that the equipment was sold on April 1 of the fifth year for $103,847. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. - Select - - Select - - Select - - Select - Question Content Area 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations
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