On January 2, 2018 Careful Corporation purchased security equipment for $44,000 cash. The equipment has an estimated useful life of 8 years and a $4,000 salvage value. Careful uses the straight-line depreciation method. What is the book value of the equipment on December 31, 2020? Group of answer choices A. $44,000 B. $40,000 C. $29,000 D. $15,000

On January 2, 2018 Careful Corporation purchased security equipment for $44,000 cash. The equipment has an estimated useful life of 8 years and a $4,000 salvage value. Careful uses the straight-line depreciation method. What is the book value of the equipment on December 31, 2020? Group of answer choices A. $44,000 B. $40,000 C. $29,000 D. $15,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An asset was purchased three years ago at a cost of P5,000. It was estimated to have a useful life of 8 years with a salvage value of P250 at the end of the time. It is now of no future use and can be sold for only P720. a. Straight-line method b. Sum-of-the-Years'-Digits (SYD) Method
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Example 2 Equipment was purchased at the beginning of 2018 for $850,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage, value of $100,000. The equipment was depreciated using the straight-line method of depreciation through 2020. At the beginning of 2021, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $62,500. Required: Prepare the appropriate adjusting entry for depreciation for 2021.
Use the following information for the next three (3) questions: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1,375,000. 64) How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000 B. 1,250,000 C. 1,000,000 D. 750,000 65) What is the correct depreciation to be recognized in 2024? A. 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 66) How much is the loss on impairment should be recognized on January 1, 2027? C. 250,000 A. 750,000 B. 500,000 D. 0
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Computing Partial Period Depreciation under Multiple Depreciation Methods Compute depreciation expense for 2021 for each asset #1, #2, #3, and #4. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Acquisition Acquisition Useful Salvage 2021 Depreciation Value Asset Date Depreciation Method Cost Life Expense #1 Jan. 1, 2020 Straight-line $4,000 4 years $200 $ 950 v #2 Aug. 30, 2020 Double-declining-balance 5,800 8 years 400 $ 1,125 x #3 Feb. 1, 2021 Sum-of-the-years'-digits 7,200 4 years 320 $ 1,147 x #4 Jul. 31, 2021 Straight-line 13,520 8 years 0 $
2. A company purchased a truck for $35,000 on January 1, 2019. The truck is estimated to have a useful life of four years and a salvage value of $1,000. Assuming that the company uses straight-line depreciation, what is depreciation expense for the year ended December 31, 2020? a. $8,750 b. $17,500 c. $8,500 d. $17,000 e. $25,500