On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had anestimated salvage value of $4,000 and an estimated life of 7 years. Your company was using thesum of the years' digits method of depreciation method and records depreciation annually onDecember 31.A.Prepare the journal entries and show your calculations forNovember 1, 2020December 31, 2020December 31, 20211.2.3.Assume at the end of 2021, the equipment was becoming obsolete. You estimated futurecash flows from the equipment would be $29,000. An appraisal of the value of theequipment on December 31, 2021, indicated a fair value of $23,000. Prepare the entryfor impairment (if needed).В.Assume the equipment was NOT becoming obsolete, so ignore any impairment in part B.Assume you changed from sum of the years' digits method to straight line method ofdepreciation on March 1, 2022. Prepare all entries related to the equipment anddepreciation onС.March 1, 2022December 31, 20221.2.

Name: On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipme
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had anestimated salvage value of $4,000 and an estimated life of 7 years. Your company was using thesum of the years' digits method of depreciation method and records depreciati

Depreciation refers to the accounting method where the asset value decreases over the useful life.…

Business

Accounting

On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had an estimated salvage value of $4,000 and an estimated life of 7 years. Your company was using the sum of the years’ digits method of depreciation method and records depreciation annually on December 31. А. Prepare the journal entries and show your calculations for November 1, 2020 December 31, 2020 December 31, 2021 1. 2. 3.

On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had an estimated salvage value of $4,000 and an estimated life of 7 years. Your company was using the sum of the years’ digits method of depreciation method and records depreciation annually on December 31. А. Prepare the journal entries and show your calculations for November 1, 2020 December 31, 2020 December 31, 2021 1. 2. 3.

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

Machinery was purchased on January 1 for $65,660. The machinery has an estimated life of seven years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year (rounded to the nearest dollar) would be: Oa. $13,400 Ob. $12,900 Oc. $12,400 Od. $14,400 Previous Next 1:04 PM a $eg 12/11/2020
If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for the monthly expense under straight-line depreciation is a. Depreciation Expense 100 Accumulated Depreciation 1,200 Accumulated Depreciation 1,200 100 b. Depreciation Expense 1,200 c. Accumulated Depreciation Depreciation Expense d. Accumulated Depreciation Depreciation Expense 1,200 100 100 O D O A
I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
Item 2: Entity B purchased equipment for $180,000 on January 1, 2024 with an estimated salvage value $30,000 and a five-year useful life. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the third year (prepare a partial classified balance sheet). Show your work.
Using the following information: Cost of asset, $290,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $40,000 A. Make the December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank. December 31 B. Determine the net book value (NBV) of the asset on December 31.
Orr January 1, 2024, Company ABC purchased a piece of equipment for $50,000. The equipment has an estimated useful life of 5 years and a salvage value of $5,000. Calculate the depreciation expense for the year ended December 31, 2024, using the straight-line depreciation method.
Please help me
Please show all your work
On 1/1/2020 you have purchased an asset with for $50,000. You estimate the useful life to be 5 years and the salvage value to be $10,000. A) Using straight line depreciation, fill in the estimated depreciation schedule below. B) Now using accelerated depreciation (1.5X declining balance), fill in the estimated depreciation schedule below. C) On 12/31/2020 which method will report more net income, and by how much? Assume the tax rate is 40%. D) Assume that on 1/1/2021, you choose to sell the asset. You receive 40,000 in cash. Report the gain or loss under each depreciation method. (Circle one and Fill in the blank) Straight Line Depreciation: GAIN or LOSS Amount: 1.5X Accelerated Depreciation: GAIN or LOSS Amount:
Skysong Industries presents you with the following information. Complete the table for the year ended December 31, 2027. The company depreciates all assets using the half-year convention. (Round answers to O decimal places, e.g. 45,892.) Description Machine A Machine B Machine C Machine D Date Purchased 2/12/25 8/15/24 7/21/23 Cost $151,050 80,000 232,140 (c) Salvage Value $16,960 22,260 23,500 73,140 Life in Years. 10 5 00 8 5 Depreciation Method SL DDB SYD (a) f D
d