Part a.Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimateduseful life of the equipment is 5 years, the salvage value is $10,000, and the company uses thestraight-line method to depreciate fixed assets.Requlred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrappedafter flve years?Part b.On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated thatthe truck would be driven 100,000 miles during the next 5 years, at which time it would havea salvage value of $3,000. During the first and second years, the truck was driven 22,000 and18,000 miles, respectively.Requlred: How much Is accumulated depreclation usIng the unlts of output (mllesdriven) method at the end of year 2?Part c.Zack Co. incurred the following costs related to equipment during November 2017.1. Purchased equipment with a list price of $90,000 for $87,300.2. Had the equipment installed and paid the installer $2,000.3. Paid the freight bill for delivery of the equipment, S1,000.4. Advertised a product that will be produced by the new equipment, $3,400.5. Paid sales taxes of $3,800 on the purchase of the new equipment.Requlred: Calculate the capltallzed cost of the equlpm ent.Part d.Rio Grande Company purchased a delivery truck on January 1, 2017 for $75,000. Theestimated useful life of the delivery truck is 5 years, the salvage value is $10,000, and thecompany uses the straight- line method to depreciate fixed assets.Requlred: Record the Journal entry that Rlo Grande would make at the end of the flfthyear If the dellvery truck was sold for $6,800.

Name: Part a.Rio Grande Company purchased equipment on January 1, 2017 for
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Part a.Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimateduseful life of the equipment is 5 years, the salvage value is $10,000, and the company uses thestraight-line method to depreciate fixed assets.Requlred: Prepa

As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Business

Accounting

Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. RequIred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years?

Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. RequIred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years?

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

nku.4
The following information is available on a depreciable asset: Purchase date January 1, Year 1 Purchase price $96,000 Salvage value $10,000 Useful life 10 years Depreciation method straight-line The asset's book value is $78,800 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during Year 3 would be: Multiple Choice $7,880.00 $9,225.00 $8,600.00 $7,380.00 $9,850.00
None
s
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 $4,667
Required information Skip to question [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid $ 8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $17, 280 salvage value. Straight line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $24, 500 cash and (b) it is sold for $98, 000 cash.
Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes: Cost $ 25,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Duncan uses the double-declining balance (DDB) depreciation method, answer the following question:Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)? Answer- $ ___
.
A plant asset acquired on January 4, 200B, at a cost of $300,000 has an estimated useful life of 10 years. The salvage value is estimated fthe asset's useful life. to be $25,000 at the end of- Instructions Determine the depreciation expense for each of the first two years using: (a) the straight-line method. (b) the double-declining-balance method. Please show your work either in the answer space provided OR upload a file. A - U X2 x2 a. Straight-Line F4 PrtScn Home 21 F5 F6 F7 F8 F9 ill
Godo
Urmilaben
Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five years and have a salvage value of $60,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Fraction of Year Depreciation Expense Year First year Second year Annual Depreciation X = Annual depreciation