I want to this question answer general Accounting PrintCo uses straight-line depreciation. Assetspurchased between the 1st and 15th of the month aredepreciated for the entire month; assets purchasedafter the 15th are depreciated starting the followingmonth. On July 25, 20X1, PrintCo purchasesequipment for $24,000 with an expected life of 4 yearsand residual value of $4,000. Calculate the 20X1depreciation expense.

Step 1: Define Straight-Line DepreciationStraight-Line Depreciation is a method of allocating the…

Answered: PrintCo uses straight-line…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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Assume that equipment is purchased at a cost of $10,000 with no residual value and isdepreciated at a straight line rate of 10%.The equipment was sold for cash on Oct 12 ofthe eighth year of its use. The balance of accumulated depreciation account as of thepreceding Dec 31 (end of 7th yr) is $7,000.Required:a. Entry to update the depreciation for the 9 months of the current year .b. Assuming that the equipment was sold for $ 2,800 on Oct 12, determine the gain orloss on the sale of equipment.c. Journalize the entry to record the sale.Hint: calculate book value of the equipment as on oct 12 and compare with the amount of cash gettingin return.
1. On January 1, 2019, Caylor Corp. purchases a machine for $185,000, estimated useful life of 40,000 machine hours, salvage value of $7,500. Actual hours of operation are: 2019: 13,000 hours; 2020: 15,000 hours; 2021: 14,000 hours. They use UOP depreciation. Compute depreciation for 2019 – 2021. Round the rate to 2 decimals. 2. On March 1, 2017, Effy Company purchases for $600,000 a machine that Efay estimates will have a useful life of 50,000 machine hours and a salvage value of for $15,000. In Year 1, Effy uses the machine for 11,100 hours; in Year 2, 8,600 hours; in Year 3, 9,100 hours; in Year 4, 12,000 hours; and in Year 5, 13,600. They use UOP depreciation.
An asset is purchased for P9,000.00. Its estimated economic life is 10 years after which it will be sold for P1,000.00. Find the depreciation in the first three years using straight line method.
Phillips Ltd. purchased a machine on 26 March 20X3 for $136,000 and began to use it immediately. The estimated useful life of the machine is 5 years, and it has an expected residual value of $12,100 at that time. Phillips uses straight-line depreciation. Required:1 & 2. Calculate annual depreciation for 20X3 through 20X8 assuming that depreciation is calculated to the nearest month using three accounting conventions: Half-year convention Full-first-year convention Final-year convention Year Month Half year Full first year Final year 20X3 20X4 20X5 20X6 20X7 20X8 3. Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $7,600 at the end of 20X6, using net book value from requirement 1, and then from the three alternatives in requirement 2. Year Month Half Year Full First Year Final Year Proceeds, 20X6 Net book…
An asset's book value is $25,200 on January 1, Year 6. The asset is being depreciated $350 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $17,900, the company should record:
ABC, whose reporting period is the 12 months ended 31 December, has charged depreciation monthly at the rate of 10% per annum on cost on an item of plant bought on 1 September 20X0 costing £30,000. The depreciation method was changed from straight line to 10% reducing balance at the end of 20X3. The depreciation charge on this asset for 20X5 was:
Depreciation expense is 2.4% of the gross beginning balance of property, plant and equipment (PPE). As of December 31, 2021, the gross balance of PPE is P3,980,000. For January 2022, P500,000 new PPE will be acquired. It is the policy of the company that PPE acquired in the first half of the year will be depreciated for one full year. (Assume that PPE, net at the end of 2021 is #3,123,090.) How much is the PPE, net and Accumulated Depreciation - PPE on December 31, 2022? P3,875,670.00; P684,350.00 P3,675,870.00; P864,530.00 P3,575,670.00; P984,550.00 P3,515,570.00; P964,430.00
An asset will cost $1,750 when purchased this year. It is further expected to have a salvage value of $250 at the end of its five-year depreciable life. Calculate complete depreciation schedules giving the depreciation charge, D(n), and end-of-year book value, B(n), for straight-line (SL), sum of the years digits (SOYD), double declining balance (DDB), and modified accelerated cost recovery (MACRS) depreciation methods. Assume a MACRS recovery period of 5 years.
An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method
An asset costs $290,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year Depreciation expense 1 $ 2 $ 3 $ Accelerated cost recovery system of depreciation: Year Depreciation expense 1 $ 2 $ 3 $
On January 1, 2021, Cheyenne Corp. purchased equipment for $22000. The company is depreciating the equipment at the rate of $880 per month. At January 31, 2022, the balance in Accumulated Depreciation is: $11440 credit. $880 debit. $54560 debit. $10560 credit.
whirlpool Company purchases equipment on January 1, Year 1, at a cost of $534,000. The asset is expected to have a service life of 12 years and a salvage value of $48,060. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.) Depreciation for Year 1 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 2 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 3 $enter a dollar amount rounded to 0 decimal places

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