Oki Company pays $293,750 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Oki Company pays $293,750 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 5R: A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life...

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Show Me How Print Item Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years. Determine the following. a. The depreciable cost b. The straight-line rate c. The annual straight-line depreciation Check My Work Email Instructor All work saved. GMX earch 近