Problem 9-15A Partial-period depreciation; disposal of PPE LO2, 3, 6 CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867 Endblast Productions showed the following selected asset balances on December 31, 2020: Land.. Building.... Accumulated depreciation, building ¹. Equipment...... Accumulated depreciation, equipment². $396,800 526,400 393,600 Required Prepare the entries for each of the following (round final calculations to the nearest whole dollar). 1. The land and building were sold on September 27, 2021, for $592,000 cash. 2. The equipment was sold on November 2, 2021, for $56,800 cash. 171,200 74,400 ¹ Remaining estimated useful life is eight years with a residual value of $80,000; depreciated using the straight-line method to the nearest whole month. 2 Total estimated useful life is 10 years with a residual value of $16,000; depreciated using the double-declining-balance method to the nearest whole month.

Problem 9-15A Partial-period depreciation; disposal of PPE LO2, 3, 6 CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867 Endblast Productions showed the following selected asset balances on December 31, 2020: Land.. Building.... Accumulated depreciation, building ¹. Equipment...... Accumulated depreciation, equipment². $396,800 526,400 393,600 Required Prepare the entries for each of the following (round final calculations to the nearest whole dollar). 1. The land and building were sold on September 27, 2021, for $592,000 cash. 2. The equipment was sold on November 2, 2021, for $56,800 cash. 171,200 74,400 ¹ Remaining estimated useful life is eight years with a residual value of $80,000; depreciated using the straight-line method to the nearest whole month. 2 Total estimated useful life is 10 years with a residual value of $16,000; depreciated using the double-declining-balance method to the nearest whole month.

Name: Problem 9-15A Partial-period depreciation; disposal of PPELO2, 3, 6CH
Uploaded: 2024-03-05T11:50:36.000Z
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Description: Problem 9-15A Partial-period depreciation; disposal of PPELO2, 3, 6CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867Endblast Productions showed the following selected asset balances on December 31, 2020:Land..Building....Accumulated depreciation,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Problem 9-15A Partial-period depreciation; disposal of PPELO2, 3, 6
CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867
Endblast Productions showed the following selected asset balances on December 31, 2020:
Land..
Building....
Accumulated depreciation, building ¹.
Equipment...
Accumulated depreciation, equipment²..
$396,800
526,400
393,600
Required
Prepare the entries for each of the following (round final calculations to the nearest whole dollar).
1. The land and building were sold on September 27, 2021, for $592,000 cash.
2. The equipment was sold on November 2, 2021, for $56,800 cash.
171,200
74,400
¹ Remaining estimated useful life is eight years with a residual value of $80,000; depreciated using the straight-line method to the nearest whole month.
2 Total estimated useful life is 10 years with a residual value of $16,000; depreciated using the double-declining-balance method to the nearest whole month.

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