On January 1st, 2023, Jac Solutions Inc. purchased office equipment for $50,000. The equipment has an estimated useful life of 5 years and a residual value of $5,000. Tech Solutions Inc. uses the straight-line method for depreciation. At the end of each year, they record the depreciation expense. Calculate the annual depreciation expense, and determine the book value of the equipment at the end of each year. Bright Minds Corp., an educational technology company, acquired a new software system on April 1st, 2022, for $120,000. The software has a useful life of 4 years and a residual value of $20,000. Bright Minds Corp. decides to use the double-declining balance method for depreciation. At the end of each year, the company records the depreciation expense for the software. Calculate the depreciation expense for each of the first two years (2022 and 2023). Additionally, determine the book value of the software at the end of each year.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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On January 1st, 2023, Jac Solutions Inc. purchased office equipment for $50,000. The
equipment has an estimated useful life of 5 years and a residual value of $5,000. Tech
Solutions Inc. uses the straight-line method for depreciation. At the end of each year, they
record the depreciation expense. Calculate the annual depreciation expense, and determine
the book value of the equipment at the end of each year. Bright Minds Corp., an educational
technology company, acquired a new software system on April 1st, 2022, for $120,000. The
software has a useful life of 4 years and a residual value of $20,000. Bright Minds Corp.
decides to use the double-declining balance method for depreciation. At the end of each year,
the company records the depreciation expense for the software. Calculate the depreciation
expense for each of the first two years (2022 and 2023). Additionally, determine the book
value of the software at the end of each year.
Transcribed Image Text:On January 1st, 2023, Jac Solutions Inc. purchased office equipment for $50,000. The equipment has an estimated useful life of 5 years and a residual value of $5,000. Tech Solutions Inc. uses the straight-line method for depreciation. At the end of each year, they record the depreciation expense. Calculate the annual depreciation expense, and determine the book value of the equipment at the end of each year. Bright Minds Corp., an educational technology company, acquired a new software system on April 1st, 2022, for $120,000. The software has a useful life of 4 years and a residual value of $20,000. Bright Minds Corp. decides to use the double-declining balance method for depreciation. At the end of each year, the company records the depreciation expense for the software. Calculate the depreciation expense for each of the first two years (2022 and 2023). Additionally, determine the book value of the software at the end of each year.
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