On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $920,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Useful Life Asset Land Cost Building Equipment Vehicles $ 140,000 420,000 206,000 154,000 Estimated Residual Value N/A none (in years) N/A 25 10% of cost 6 $ 14,000 10 Total $ 920,000 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $92,000 was sold for $72,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2025.

On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $920,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Useful Life Asset Land Cost Building Equipment Vehicles $ 140,000 420,000 206,000 154,000 Estimated Residual Value N/A none (in years) N/A 25 10% of cost 6 $ 14,000 10 Total $ 920,000 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $92,000 was sold for $72,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2025.

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Description: i need the answer quickly On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the totalpurchase price of $920,000 to the various types of assets along with estimated useful lives and resid

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 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

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On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $900,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 150,000 400,000 200,000 150,000 $ 900,000 Estimated Residual Value N/A none 12% of cost $ 15,000 Estimated Useful Life (in years) N/A 25 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $90,000 was sold for $70,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required 1 Required 2 Required 3 Building Equipment Vehicles Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the…
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