On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipment had a three-year estimated life with a $4,800 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,800. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4

On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipment had a three-year estimated life with a $4,800 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,800. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4

Name: Exercise 8-15A (Algo) Revision of estimated useful life LO 8-7On Janu
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Exercise 8-15A (Algo) Revision of estimated useful life LO 8-7On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipmenthad a three-year estimated life with a $4,800 salvage val

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

Layton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200. The equipment was used for 1,350 hours during Year 1, 4,200 hours in Year 2, 3,650 hours in Year 3, and 2,800 hours in Year 4. In a table show depreciation expense, accumulated deprecation at the end of the year, beginning and ending book value (Use double declining method only) Cost Beginning Book Value Accumulated Deprecation Depreciation expense Book value at End
Colquhoun International purchases a warehouse for $338,000. The best estimate of the salvage value at the time of purchase was $13,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. B. Determine the depreciation expense for the final fifteen years of the asset's life. $4 C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Accumulated Depreciation-Warehouse Cash Depreciation Expense Inventory Patent
Equipment was acquired at the beginning of the year at a cost of $79,140. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920. a. What was the depreciation expense for the first year?$ b. Assuming the equipment was sold at the end of the second year for $59,800, determine the gain or loss on sale of the equipment.$ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Required: Complete a depreciation schedule for the straight-line method. Prepare the journal entry to record Year 2 depreciation.
A company purchased a delivery van for $24,900 with a salvage value of $2,700 on October 1, Year 1. It has an estimated useful life of 6 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1? Multiple Choice O O $3,700. $925. $4,150. $77. $1,383. 83
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate: At time of purchase, annual depreciation was ___ Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the asset’s life: Original cost Depreciation previously taken Book value at beginning of year five Salvage value Revised remaining depreciable cost Revised remaining useful life 15 years Revised annual depreciation Create the depreciation expense journal entry for year five: DR CR
Waylander Coatings Company purchased waterproofing equipment on January 6 for $591,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $48,800. The equipment was used for 3,500 hours during Year 1, 2,900 hours in Year 2, 1,700 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 135,700 V 59 x Year 2 Year 3 24 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the…
A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4, 200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,695 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:$3, 780. $6.485$1,275$4,200.$2,960.
Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The company has determined that the salvage is $2,000, and the life of the asset is five years. Depreciation is to be straight-line. Journalize the entry to record depreciation for the first month of the asset’s life