On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of $730 per month. The book value of the equipment at December 31, 2025 is: $52560. $8760. $0. $43800.

On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of $730 per month. The book value of the equipment at December 31, 2025 is: $52560. $8760. $0. $43800.

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: January 2, 2021, Potter Furniture purchased display shelving for $8,200 cash, expecting the shelving…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: On January 1, 2017, Extensive Manufacturing purchased a machine for $780,000 that it expected to…

A: Asset disposal: It involves removing assets from accounting records(balance sheet).An asset may…

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: 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: Burrell Company purchased a machine for $36,000 on January 2, 2019. The machine has an estimated…

A: Straight line depriciation method is a depriciation method in which same amount of depriciation on…

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, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an…

A: The objective of the question is to journalize all entries required for the machine from April 1,…

Q: On January 1, 2025, a machine was purchased for $1,040, 000 by Metlock Co. The machine is expected…

A: The objective of the question is to calculate the income before income tax for Metlock Co. from the…

Q: was the gain/ loss on the sale of the machine?

A: Solution Prepared the Machinery Account for Calculate the Gain or Loss on sale of Machinery

Q: EMSN Corp. purchased PPE on January 1, 2020 for $7,221,000. The production estimates the asset will…

A: Hi student Since there are multiple questions, we will answer only first question. Depreciation is…

Q: Kiwi company issued a 2.5% promissory note payable in 3 equal annual installments to purchase…

A: Introduction Note payable is a instrument and promissory note in which person agrees to pay certain…

Q: On April 1, 2019, Coronado Industries purchased new machinery for $453000. The machinery has an…

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

Q: On January 2, 2023, Saminski, Inc., acquired equipment for $400,000. . The estimated life of the…

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

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: On January 2, 2019, Konan Corporation acquired equipment for $200,000. The estimated life of the…

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

Q: 1. Which depreciation method is the company using in each example? 2. Compute the depreciation…

A: (1). N Company purchased as asset for $17,000 on January 2, 2021. The asset has an expected residual…

Q: amortization expense in 2024?

A: Amortization expense is the write-off of an intangible asset over its anticipated duration of use,…

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: Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life…

A: Depreciation expense:— It is the allocation of depreciable cost of asset over the estimated useful…

Q: On July 1, 2020, Lettuce Company, a calendar-year company, purchased a machine for a cash price of…

A: 2020: Depreciation rate = 1/useful life = 1/10 = 10% Depreciation expense (for the entire year) = 2…

Q: P400,000 Year Purchased Useful life Salvage value Depreciation method 2014 2015 2016 2018 10 years…

A: Carrying value refers to the concept which determines the value of an asset after subtracting…

Q: On January 2, 2023, Thrifty Clothing Consignments purchased showroom fixtures for $11,000…

A: Depreciation: Depreciation is a method that reallocates the cost of a tangible asset over its useful…

Q: On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO…

A: Solution:- Preparation of Journal entry as follows under:-

Q: On January 1, 2020, Toot Company sold a piece of equipment costing P1,500,000 with accumulated…

A: Basic Accounting Non Interest bearing note, Valuation and amortization

Q: Quigley Co. bought a machine on January 1, 2019 for $2,800,000. It had a $240,000 estimated residual…

Q: In the beginning of 2021, Ciento Company purchased equipment worth P250,000. It is estimated to be…

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

Q: On April1, 2021,DG Corporation purchased an equipment with cost of 150000. The company estimate that…

A: Every fixed asset loses its value over the period of time. Depreciation is being recorded on cost of…

Q: year life and $10500 salvage value at the end of its useful life. What is the depreciation expense…

A: Straight line method of depreciation is the easiest method of depreciation where depreciation for…

Q: On January 2, 2022, Lauren Corporation purchased factory equipment for $850,000. In addition, it…

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

Q: On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated…

A: Here selling price is determined as follows = down payment received + Present value of non…

Q: Circle cellar sells equipment on June 1 2021 for $695,000 cash. Circle incurred 4000 of removal and…

A: An accounting book's journal entry is a record of a company's financial transactions. A fully…

Q: Basalt Inc bought a new vehicle on September 1, 2021 for $50,000. The vehicle is estimated to have a…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun…

A: It is assumed that there is a typo in the question and the question is asking about the annual…

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: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On July 1, 2019, Nuuty Inc., a calendar-year company, purchased a machine for a cash price of…

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

Q: On January 1, 2022. Swifty Company purchased equipment for $41000. The company is depreciating the…

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

Q: On June 1. 2018. KJ Corporation acquired equipment for $360,000. The estimated useful life of th…

A: Depreciation is the reduction in the value of fixed assets due to the usage and passage of time or…

Q: On January 2, 2023, Lotus Spa purchased fixtures for $57,600 cash, expecting the fixtures to remain…

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

Q: On January 2, 2022, Pet Haven purchased fixtures for $39,600 cash, expecting the fixtures to remain…

A: Depreciation: It can be described as a reduction or fall in fixed asset's value that is utilized by…

Question

On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of
$730 per month. The book value of the equipment at December 31, 2025 is:
$52560.
$8760.
$0.
$43800.

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Cake, Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset's fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?*
On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of equipment at a total cost of P10,000,000. The equipment is estimated to have a useful life of 5 years with a residual value equal to 10% of its cost. - How much is the depreciation expense for 2021 using the straight line depreciation method? - How much is the depreciation expense for 2024 using the SYD depreciation method? - How much is the depreciation expense for 2025 using the double declining balance depreciation method?
On January 1, 2014, Bonita Industries purchased equipment at a cost of $361000. The equipment was estimated to have a salvage value of $10000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2021? $45125 $9750 $43875 $10028
On January 1, 2016, Cookie Inc. purchased an equipment for P1,970,000. On this date, the equipment has an estimated economic useful life of 12 years and estimated residual value of P98,000. It is the company’s policy to depreciate this type of equipment using a sum-of-years digit. On January 1, 2020, Cookie Inc. made a review of the estimated useful life and salvage value of the equipment and review revealed that the asset has a revised total life of 14 years and a residual value of P100,000. The company also changed the method of depreciation to straight-line. What is the carrying value of the asset of December 31, 2021?
On January 1, 2025, a machine was purchased for $1,040,000 by Metlock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Ivanhoe Inc. for 3 years on January 1, 2025, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2025. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. How much should Metlock report as income before income tax on this lease for 2025? Income before income tax $ (b) eTextbook and Media List of Accounts Date 130,000 Record the journal entries Ivanhoe would record for 2025 on this lease, assuming its incremental borrowing rate is 5% and the rate implicit in the lease is unknown. (List all debit entries…
KE On January 2, 2023, Konan Corporation acquired equipment for $800,000. The estimated life of the equipment is 5 years or 90.000 hours. The estimated residual value is $30.000. What is the balance in Accumulated Depreciation on December 31, 2024, it Konan Corporation uses the double-declining-balance method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar) A $192.000 OB $308,000 OC. $512,000 OD. $770,000 COND
Kk120.
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 1 July 2022, your company acquired a machine for $103,000 on credit and decided to depreciate it for 25 years with no residual amount. The credit was taken from a local bank that charges 4.2% per annum with payments every year on 30 June. Assume that the fair values of this asset were: Date Fair Value 1/7/2023 $105,000 30/11/2023 $98,000 30/6/2024 $80,000 a. Using the cost model, prepare the relevant journal entries from the date of acquisition to 30 June 2023 b.Using the revaluation model, prepare the relevant journal entries from the date of acquisition to 30 June 2023.
ABC Inc. purchased a machine on January 1, 2014 for 900,000. This asset will be depreciated for 10 years. The ABC Inc. purchased a replacement part for 180,000 on January 1, 2020. Assuming the replace part’s cost cannot be determined how much is the loss on replacement to be recognized for 2020?
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.
Alteran Corporation purchased office equipment for $1.2 million at the beginning of 2022. The equipment is being depreciated over a 10-year life using the double-declining-balance method. The residual value is expected to be $600,000. At the beginning of 2024 (two years later), Alteran decided to change to the straight-line depreciation method for this equipment. Required: Prepare the journal entry to record depreciation for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.