On June 30, Year 1, Melon Corp. purchased a printer for $59,000. It expects the printer to last for four years and have a residual value of $8000. Compute the depreciation expense on the printer for the year ended December 31, Year 1, using the straight-line method. O $7438 O $14,750 O $12,750 O $6375
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- Find the depreciation for the fourth year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 3-year property and was purchased for $90,981. MACRS Table Depreciation rate for recovery period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 % 20.00 % 14.29 % 10.00 % 5.00 % 3.750 % 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462…A SuperShip sorting machine that cost $6,000 with a useful life of five years and a residual value of $1,000 was purchased on January 1. What is the DDB depreciation for each year? (Enter "0" for any zero balance.) DDB depreciation Year 1 Year 2 Year 3 Year 4 Year 5Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation? $75,000 Credit O None of the above. O $35.000 Credit $35.000 Debit $40,000 Debit
- 1. The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the equipment will use for 5 years and has a residual value of $2,000. The equipment has the following capacity: 10,000 service hours. December 31 is the reporting date. The equipment provided 600 and 2,200 service hours in 20X1 and 20X2, respectively. Required Calculate depreciation expense for 20X1 and 20X2 using different methods in the following table Straight-line Double-declining-balance Activity method For 20X1, 20X2 2. The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Acmulated Depreciation Equipmnt A $15,000 $8,000 Equipment B $30,000 $19,000 Equipment C $45,000 $23,000 The unit’s fair value less costs to sell was $25,000. The unit’s future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Required (1) Prepare journal entries to record impairment.…Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] aw 11 On April 1, Cyclone Company purchases a trencher for $304,000. The machine is expected to last five years and have a salvage value of $52,000. Exercise 8-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Annual Period Beginning of Period Book Value Year 1 Year 2 Depreciation for the Period Depreciation Partial Rate Year Depreciation ExpenseDunn Corporation acquired a new depreciable asset for $155,000. The asset has a 5-year expected life and a residual value of zero. Required: 1. Prepare a depreciation schedule for all 5 years of the asset's expected life using the straight-line depreciation method. If an amount is zero, enter "0". Dunn Corporation Straight-Line Depreciation Schedule Five Years End of Year Depreciation Expense Accumulated Depreciation Book Value $fill in the blank 7b22c600a070fbf_1 Year 1 $fill in the blank 7b22c600a070fbf_2 $fill in the blank 7b22c600a070fbf_3 fill in the blank 7b22c600a070fbf_4 Year 2 fill in the blank 7b22c600a070fbf_5 fill in the blank 7b22c600a070fbf_6 fill in the blank 7b22c600a070fbf_7 Year 3 fill in the blank 7b22c600a070fbf_8 fill in the blank 7b22c600a070fbf_9 fill in the blank 7b22c600a070fbf_10 Year 4 fill in the blank 7b22c600a070fbf_11 fill in the blank 7b22c600a070fbf_12 fill in the blank 7b22c600a070fbf_13 Year 5 fill in the blank…
- On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000Byrd Inc., a calendar year-end company, purchased a machine on 1/1/X1 with the following attributes: Cost $ 50,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Byrd uses the straight-line depreciation method, answer each of the following questions: (do not include decimals or cents) Question #1: How much depreciation expense should be recorded in 20X2 (the second year of the asset's life)? Answer: $ Question #2: What should be the balance in the "Accumulated Depřeciation" account at the end of 20X2, after all year-end journal entries? Answer: $ Question #3: What should be the book value of the machine at the end of 20X2, after all year-end journal entries? Answer: $Plant Master Company purchased a delivery van for $35,000 on January 1. The van has an estimated 4-year life with a residual value of $2,000. What would the depreciation expense for this van be in the first year if Plant Master uses the straight-line method? O A. $8,250 B. $35,000 C. $8,750 D. $33,000
- Peavey Enterprises purchased a depreciable asset for $25,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,600, what will be the amount of accumulated depreciation on this asset on December 31 Year 3? Multiple Choice О $5,600 $22,400 $18,667 $15,400 О $4,667Troy Industries purchased a new machine 2 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100%…On July 10, 20X8, your firm purchases for $126,000 a machine with an estimated useful life of 8 years and a salvage value of $6,000. Your firm uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month and assets purchased after the 15th as though they were acquired the following month. What is 20X1 depreciation expense $13,333 $11,111 $26,667 $13,889
