What is the second year annual depreciation expense On 2015/1/1, Samantha Ltd. purchasedmachinery for $60,000. The useful life is 8years with a salvage value of $6,000. Thecompany uses the double declining balancemethod.What is the second year's annual depreciationexpense (2016/12/31)?

Explanation of Double Declining Balance (DDB) Method:The double declining balance method is an…

Answered: On 2015/1/1, Samantha Ltd. purchased…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
On 2015/1/1, Samantha Ltd. purchased machinery for $60,000. The useful life is 8 years with a salvage value of $6,000. The company uses the double declining balance method. What is the second year's annual depreciation expense (2016/12/31)? Answer
Gordon Chemicals Company acquires a delivery truck at a cost of $25,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 3-year useful life. Compute annual depreciation for the first and second years using the straight-line method. (Round answers to 0 decimal places, e.g. 125.) First Year Second Year Annual depreciation under straight-line method
Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated using the straight-line method assuming it has a five-year life with a $1,400residual value. Taylor sold the machine on January 1, 2018, for $7,600.Q7-61. What is the book value of the machine on December 31, 2017?a. $2,100b. $6,440c. $8,400d. $9,800
Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is expected to have a salvage value of 15,800 at the end of its five-year useful life. if the asset id depreciated on the double-declining- balance method, the assets book value on Dec 31, year 2 will be?
On December 31, 2011, Lin Co. purchased an equipment with an estimated useful life of 10 years. Theequipment was expected to have a residual value of P5,000 at the end of its service life. Thesum-of-the-years-digits method was used in computing depreciation. For the year ended December 31,2015, the depreciation applicable to this equipment was P42,000.What was the acquisition cost of the equipment?a. P335,000 c. P293,750b. P330,000 d. P325,000
The Hong Company purchased for P240,000 cash on July 1, 2014 a machine with an estimated useful life of 10 years and an estimated residual value of P12,000. Depreciation was recorded on a monthly basis using the straight-line method. The machine was sold for P130,000 on September 30,2019. The sale resulted in a how much gain or loss? (Indicate whether gain or loss)
B Co acquired a non-current asset on 1 January 2007 for $80,000. It had no residual value and a useful ife of ten years. On 1 January 2010 the remaining useful life was reviewed and revised to four years. What will be the depreciation charge for 2010?
On July 1, 2011, Hale Kennels sells equipment for $66,000. The equipment originally cost $180,000, had an estimated 5-year life and an ex ectedesidual value of $30,000. The accumulated depreciation account had a balance of $105,000 on January 1, 2011, using the straight-line method. The gain or loss on disposal is a. $9,000 gain

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On 2015/1/1, Samantha Ltd. purchased machinery for $60,000. The useful life is 8 years with a salvage value of $6,000. The company uses the double declining balance method. What is the second year's annual depreciation expense (2016/12/31)?