On January 1, 2022. Swifty Company purchased equipment for $41000. The company is depreciating the equipment at the rate of $820 per month. The book value of the equipment at December 31, 2022 is $41000. O $0. O $31160. O $9840.

On January 1, 2022. Swifty Company purchased equipment for $41000. The company is depreciating the equipment at the rate of $820 per month. The book value of the equipment at December 31, 2022 is $41000. O $0. O $31160. O $9840.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Skysong, Inc. purchased equipment for $7380 on January 1, 2025. The company expects to use the…

A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…

Q: Buggy Company purchased equipment on January 1, 2020, for $200,000. The residual value is $20,000…

A: Double declining balance depreciation involves depreciating the asset at a double rate on a…

Q: HH Co. purchased equipment at the beginning of 2020 for $53,000 with an estimated residual value of…

A: Answer) Calculation of gain or loss on disposal of Equipment Gain or loss on disposal of Equipment =…

Q: Create Co. purchased equipment on November 1, 2021 for P850,000. The company estimates that the…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 1, 2014, Waterway Industries purchased equipment at a cost of $404000. The equipment was…

A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…

Q: A company purchased an equipment for P 536733 and paid 15556 for freight and delivery charges to the…

A: Depreciation refers to an amount decreased in the value of an asset due to obsolescence, wear or…

Q: On January 1, 2022, Sheridan Company purchased equipment for $45360. The company is depreciating the…

A: Depreciation: Decreasing value of fixed assets over its useful life period.

Q: Nn.57. Subject :- Account Company purchased a machine for $9,800 on January 1, 2019. The…

A: Depreciation expense is a type of expense that reduces the value of fixed assets. It occurs due to…

Q: On September 22, 2022, Marvel Inc. purchased machinery for $190,000. Residual value was estimated to…

A: Sum-of the-year-digit method:This method takes the asset's expected life and adds together the…

Q: Union Industries purchased equipment for $86,000 on January 1st, 2022. The useful life of the…

A: Depreciation is a reduction in value of asset due to wear and tear, technological advancement, other…

Q: Swifty Corporation bought equipment on January 1, 2021. The equipment cost $351000 and had an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On January 2, 2023, Kellogg Corporation acquired equipment for $300,000. The estimated life of the…

A: Depreciation is reduction in value of asset over the period of time. Under straight line…

Q: Calculate the depreciation for each year of the truck's life. (Roune

A: The double declining balance (DDB) method is an accelerated depreciation calculation used in…

Q: TB MC Qu. 08-117 An asset's book value... An asset's book value is $18,000 on December 31, Year 5.…

A: If the assets are sold at a higher price than its book value, the difference amount is considered as…

Q: A. On 1 Angust 2018, a company purchased new machinery with an estimated useful life of 10 years.…

A: Depreciable cost=Cost of machine-Residual value=$55,000-$5,000=$50,000

Q: Sheridan Corporation bought equipment on January 1, 2021. The equipment cost $354000 and had an…

A: Under Straight line method, depreciable amount if an asset is evenly spread over its life.…

Q: Burrell Company purchased a machine for $10,000 on January 2, 2019. The machine has an estimated…

A: DEPRECIATION UNDER DOUBLE DECLINING METHOD Rate =100%5 =20% Double declining rate = 20×2=40%

Q: Ortiz purchased a piece of equipment that cost $202,000 on January 1, 2020. The equipment has the…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Scott Company purchased equipment for $350,000 on 2020. It is estimated that the equipment will have…

A: Depreciation expense is a non cash expense and it is charged each year for the amount of asset…

Q: Gina Corporation purchases new office equipment for $2,500,000 on January 1, 2020. Gina estimates…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On March 1, 2023, Sunland Ltd. purchased a machine for $63,000 by paying $21,000 down and issuing a…

A: Fixed assets are those assets which are being held by business for longer period of time. These are…

Q: n January 1, 2021, Gleason Company purchased new machinery for $ 333,000. The new machine was…

A: The book value of an asset is calculated as cost less accumulated depreciation. The accumulated…

Q: On July 1, 2019, Osceola Company retired a metal stamping machine that it had originally purchased…

A: Depreciationn is considered a reduction in the value of asset give two uses of that asset. We can…

Q: Ayayai Corp. bought equipment on January 1, 2022. The equipment cost $470000 and had an expected…

A: Depreciable cost of equipment means the total amount of depreciation which will be charged on assets…

Q: $2057000 at 12/31/20 and $2290000 at 12/31/21. Dep

A: Accumulated depreciation 2021 = $2,290,000 Accumulated Depreciation 2020 = $2,057,000 Depreciation…

Q: Mabini Company closes its books every December 31. On August 1, 2018, they bought a machine for…

A: Book value of the machine is the original cost of the machine less the accumulated depreciation. If…

Q: On December 31, 2020, Ehrlich Inc. has a machine with a book value of $260,000. The original cost of…

A: Calculation of Net Book Value on June 1, 2021 Amount Net Book value as on December 31,…

Q: 10. Gingerbread Corp purchased a refrigerated truck on January 1, 2019 for $70,000. The company…

A: Depreciation per year=Cost-Salvage valueUseful life=$70,000-$20,0005=$10,000

Q: Pier Exports purchased equipment on January 1, 2018, at a cost of $600,000. The company estimates…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets. The…

Q: On January 1, 2020, Grand Manufacturing purchased a machine for $370,000 that it expected to have a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: K On January 2, 2016, Sweet Pet purchased fixtures for $50,800 cash, expecting the fixtures to…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: On July 1, 2020, Concord Corporation purchased factory equipment for $283000. Salvage value was…

A: Solution: Under Double declining balance method of depreciation, depreciation is based on double the…

Q: Mabini Company closes its books every December 31. On August 1, 2018, they bought a machine for…

A: Depreciation expense is reduction in the value of assets due to its use, wear or tear. Depreciation…

Q: Gulfcoast, Inc. purchased a van on January 1, 2019, for $820,000. Estimated life of the van was five…

A: Working Note: 1. Depreciation of 2019 - straight line method = (Purchase amount - residual value) /…

Q: On January 1, 2021, Cheyenne Corp. purchased equipment for $22000. The company is depreciating the…

A: Depreciation: Decreasing value of fixed assets over its useful life period.

Q: On May 1, 2025, Crane Company purchased factory equipment for $739700. The asset's useful life in…

A: Activity method:- Under this method the depreciation is calculated with the help of following…

Q: A company purchased a piece of equipment for $50,000 on January 1, 2022. The equipment has an…

A: Depreciation is the reduction in value of asset over the period of time. Under straight line method,…

Q: Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet: Equipment,…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: January 1, 2014, Bonita Industries purchased equipment at a cost of $361000. The equipment was…

A: The depreciation expense refers to the reduction in the value of assets due to the use of that asset…

Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…

A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400

Q: On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated…

A: Solution: Under sum of years' digits method of depreciation. Depreciation is based on sum of digits…

Q: Carla Vista Products purchased a machine for $66400 on July 1, 2025. The company intends to…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used,…

A: Given, Cost of asset = $8,160 Residual value before change = $1,020 Residual value after change =…

Q: K The maturity value of a 4-month, 8% note for $65,000, dated May 12 is: (Round your final answer to…

A: Notes Payable - Notes Payable is an instrument issued by the payer to the Payee. This is a…

Q: Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to…

A: Depreciation as per straight line method = (Cost - Residual value)/Useful life Double-declining rate…

Question

On January 1, 2022, Swifty Company purchased equipment for $41000. The company is depreciating the equipment at the rate of
$820 per month. The book value of the equipment at December 31, 2022 is
O $41000.
O $0.
O $31160.
O $9840.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explaining depreciation expense

VIEW

Step 2: Calculating book value of the equipment

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Popeye Company purchased a machine for $350,000 on January 1, 2020. Popeye depreciates machines of this type by the straight-line method over a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Popeye discovered the error in 2021. What amount should Popeye record as depreciation expense for 2021? The tax rate is 25%. O O O O $105,000. $52,500. $70,000. $140,000.
On January 1, 2020, Swifty Corporation purchased a new machine for $4110000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $141000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Swifty's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? $3969000 $2610600 $2522400 $3316200
Oriole Company purchased equipment that cost $2595000 on January 1, 2020. The entire cost was recorded as an expense. The equipment had a 9-year life and a $103800 residual value. Oriole uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Oriole is subject to a 30% tax rate. Oriole’s net income for the year ended December 31, 2020, was understated by $2595000. $2318200. $1816500. $1622740.
On January 1, 2019, Vaughn Inc. purchased equipment for $ 44900. The company is depreciating the equipment at the rate of $ 710 per month. At January 31, 2020, the balance in Accumulated Depreciation is O $9230. O $35670. O $710. O $8520.
Blossom Corp. purchased equipment for $150000 on January 1, 2023. It is estimated that it has a useful life of 10 years, a residual value of $15200, and total production of 211000 units. During 2023, this machinery produced 23400 units. The Corporation has a December 31 year end. Using the units of production depreciation method, the 2023 depreciation expense will be O $13480 O $14949 O $26960 O $28680
Pharoah Company purchased equipment that cost $3180000 on January 1, 2020. The entire cost was recorded as an expense. The equipment had a 9-year life and a $127200 residual value. Pharoah uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Pharoah is subject to a 30% tax rate. Pharoah’s net income for the year ended December 31, 2020, was understated by $3180000. $2840800. $2226000. $1988560.
← Gulfcoast, Inc. purchased a van on January 1, 2019, for $830,000. Estimated life of the van was five years, and its estimated residual value was $94,000. Gulfcoast uses the straight-line method of depreciation. Calculate the book value of the van at the end of 2019. OA. $778,125 B. $682,800 C. $674,375 OD. $736,000
Flounder Corp. bought equipment on January 1, 2022. The equipment cost $330000 and had an expected salvage value of $40000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is $40000. $48333. $290000. $330000.
Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $16000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used? O $16740. $13540. $28140. $33480.
Carla Vista Company purchased equipment that cost $3315000 on January 1, 2020. The entire cost was recorded as an expense. The equipment had a 9-year life and a $132600 residual value. Carla Vista uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Carla Vista is subject to a 40% tax rate.Carla Vista’s net income for the year ended December 31, 2020, was understated by $1776840. $2961400. $3315000. $1989000.
Please prepare the following joiurnal entries: Show all calcualtions Bought a van, paying $10500 cash as a down payment and signed a 10 month $32000, 9% note payable for the balanceThe company paid 750 to have its company logo printed on the side of the van. The residual value is $7500. The old van was sold for $7500; it cost $32000 and acculumated depreciation up to the date of disposal was $30000
On January 1, 2021, Concord Corporation purchased equipment for $20000. The company is depreciating the equipment at the rate of $800 per month. At January 31, 2022, the balance in Accumulated Depreciation is: $800 debit. $10400 credit. $49600 debit. $9600 credit.