On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards- R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: Determine the revised annual depreciation expense for 2019 using the straight-line method.

On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards- R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: Determine the revised annual depreciation expense for 2019 using the straight-line method.

Name: Exercise 7-53Revision of DepreciationOn January 1, 2017, Blizzards-R-
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Exercise 7-53Revision of DepreciationOn January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards-R

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lord Company purchased a machine on January 2, 2019, for $70,000. The machine had an expected residual value of $10,000, an expected life of 8 years or 24,000 hours, and a capacity to produce 100,000 units. During 2019, Lord produced 12,000 units in 2,500 hours. In 2020, Lord produced 15,000 units in 3,000 hours. Required: 1 a. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the Straight-line method. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the activity method based on hours worked. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the activity method based on units of output. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for sum-of-the-years'-digits method.…
Beats Corporation constructed a machine at a total cost of $206 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum - of-the- yearsdigits method. By that method, accumulated depreciation at the end of 2023 is $972 milion. The residual value is expected to be $8.0 million. At the beginning of 2024, Beats decided to change to the straight-line method. Ignoring income taxes, what will be Beats's depreciation expense for 2024? Do not round intermedlate calculations. $14.4 million $27.2 million $5.4 million $16.2 million
BRS Inc. acquired a delivery truck for P2,100,000 on January 1, 2018. The delivery truck has useful life of 5 years and residual value of 100,000 and to be depreciated using SYD method. On January 1, 2020, BRS decided to use straight line method for depreciating the truck and determined that the remaining useful life of the truck as of this date should be 4 years. The residual value remains the same. On July 1, 2021, the delivery truck was sold for P450,000 and BRS Inc. incurred disposal cost of P50,000. What is the carrying value of the delivery truck on December 31, 2020? P800,000 P633,333 P700,000 P500,000 Using the same data, what is the gain/(loss) on disposal to be recognized on July 1, 2021? (P100,000) (P200,000) P100,000 P50,000
Meca Concrete purchased a mixer on January 1, 2022, at a cost of $45,000. Straight-line depreciation for 2022 and 2023 was based on an estimated eight-year life and $3,000 estimated residual value. In 2024, Meca revised its estimate and now believes the mixer will have a total service life of only six years, and that the residual value will be only $2,000. Required:Compute depreciation for 2024 and 2025.
Healthlabs Ltd. purchased lab equipment for $16,500 on January 1, 2020. At that time, management determined that the equipment would have a useful life of three years with no residual value and that the straight-line depreciation method would be used. On January 1, 2021, management revised its initial estimate and determined that the company would be able to use the lab equipment for a total of five years. Determine the depreciation expense for 2021. Depreciation expense for 2021 2$ eTextbook and Media Save for Later
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,500 at the end of ten years. Using the straight-line method, depreciation expense for 2021 would be:
Tamarisk Corp. (TC) purchased a building in early January 2020, and classified the cost of the basic structure of $128,000 in an account called Buildings. TC accounts for this class of asset using the revaluation model, revalues the class every three years, and uses straight-line depreciation. The building structure is expected to have a useful life of 25 years with no residual value. TC has a December 31 fiscal year end. The asset's fair value at December 31, 2022, is $114,540. (a1) Calculate TC's depreciation for the first three years. TC's annual depreciation $ Save for Later 2020 2021 2022 Attempts: 0 of 1 used Submit Answer
Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 20,000 miles in 2020. Storm computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $ fill in the blank 2020 $ fill in the blank Sum-of-the-years'-digits method 2019 $ fill in the blank 2020 $ fill in the blank
On January 1, 2021, Montana Enterprises purchased a $100,000 semi-trailer truck. In 2021 and 2022, Montana depreciated the truck using the straight-line method with an estimated 10 year useful life and an estimated $10,000 salvage value. At the beginning of 2023, Montana decided to adjust the initial estimates. The company now believes the truck will last a total of 15 years and have a salvage value of $17,000. At December 31, 2023, what will be the truck's adjusted book value reflecting the change in estimate? Multiple Choice O $73,000 $83,400 $85,000 $77,000
Equipment was purchased at the beginning of 2019 for $820000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $97000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $61000. The amount to be recorded for depreciation for 2022, reflecting these changes in estimates, is $91700. $94875. $51643. $79500.