Part C. DepreciationOn January 2, 2012, Dickens Company purchased a building and land for $740,000. The mostrecent appraisal values for the building and the land are $520,000 and $280,000, respectively.The building has an estimated useful life of 20 years and a salvage value of $60,000.1. Assuming cash transactions and straight-line depreciation, prepare journal entries torecord:a. Purcase of the building and land on January 2, 2012.b. Depreciation expense on December 31, 2012.2. Assume that after four years the land and building were sold for $585,000. Prepare thejournal entry to record the sale.

Given that, The purchase cost of Land and building = $740000 Apprised value of Building = $520000…

Answered: Part C. Depreciation On January 2,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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
eBook Show Me How Revision of Depreciation A building with a cost of $1,200,000 has an estimated residual value of $250,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method.
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
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.
! Required information [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $82,000 Accumulated Depreciation Book Value 0 $82,000 447,000 226,300 185,000 $(160,920) 286,080 (47,400) 178,900 (74,000) 111,000 • Stevens purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $13,000. • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
An asset purchased 1 January 20x4, costing $10,000, with a 10-year useful life and no salvage value, was depreciated using the straight-line method during its first three years. During 20x7, the total useful life was re-estimated to be 17 years. What is the amount of depreciation expense in 20x8? Multiple Choice $500 $412
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Current Attempt in Progress Cullumber Company purchased a machine on January 1, 2019, for $910000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022. Cullumber determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information. What is the amount of depreciation expense on this machine that should be charged in Cullumber's income statement for the year ended December 31, 20227 $227500 $91000 $113750 $182000
Record the journal entries for Depreciation and Disposal each machine .

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