None Question 19HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, thestimated that the machine would last 6 years and have a salvage value of $90,000. They begindepreciating the machine using the straight-line depreciation method. On 1/1/2019, they changetheir estimated salvage value to $50,000 and extend the useful life of the machine by 2 years.What amount of depreciation expense will Honey Bunny report (at year-end) in 2019 related to thismachine?

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Answered: Question 19 HoneyBunny, Inc. purchased…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 19E

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IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
Question 19 HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, th estimated that the machine would last 6 years and have a salvage value of $90,000. They begin depreciating the machine using the straight-line depreciation method. On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years. What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine?
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Question On October 1, 2019, Jay Company purchased a new machine for $112 500 The machine is estimated to have a $10,500 salvage value after its 10-year useful life. The machine is expected to be used 20,000 working hours over As usolut tre Instructions: Complate the lollowing depreciation schedules for 2019 and 2020. All answers should have dollar signs and commas. For example, your answers could be in the following formats: $5,000 or $15,000 or $150,000. Straight-Line Method Depreciation Expense Accumulated Depreciation Book Value 2020. Declining Balance Method (Assuming double the straight-line rate) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020 Units of Activity Method (Assuming machine working hours are as follows: 2019: 1,500; 2020: 4,000) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020
21. Revision of Depreciation On January 1, 2020, Shapiro Inc. purchased a machine for $115,000. Shapiro depreciated the machine with the straight-line depreciation method over a useful life of 10 years, using a residual value of $5,000. At the beginning of 2022, a major overhaul costing $30,000 was made. After the overhaul, the machine's residual value is estimated to be $7,500, and the machine is expected to have a remaining useful life of 11 years. Required: Determine the depreciation expense for 2022.
View Policies Show Attempt History Current Attempt in Progress * Your answer is incorrect. Vaughn Company purchased a machine on January 1, 2019, for $59000 with an estimated salvage value of $25000 and an estimated useful life of 8 years. On January 1, 2021, Vaughn decides the machine will last 12 years from the date of purchase. The salvage value is still estimated at $25000. Using the straight-line method, the new annual depreciation will be O $2550. O $2833. O $3400. O $4917.
Question 6 Porker Company purchased a machine on January 2, 2022, by paying cash of $160,000. The machine has an estimated useful life of five years (or the production of 300,000 units) and an estimated residual value of $15,000. Required: 1. Determine depreciation expense (to the nearest dollar) for each year of the machine's useful life under (a). straight-line depreciation; and (b). the declining-balance method with a 200% acceleration rate. 2. What is the book value of the machine after three years with the declining-balance method and a 200% acceleration rate? 3. What is the net book value of the machinery after three years with straight-line depreciation. 4. If the machine was used to produce and sell 55,000 units in 2022, what would the depreciation expense be under the units of production method?
Question1: ABC Ltd purchased a machine at a cost of $300,000 on 1 July 2020. It had a useful life of 10 years and after that residual value was estimated to be $60,000. The benefits from machine are expected to be spread evenly over its life. On 30 June 2022, fair value of machine was $230,000 and the salvage value and useful remaining life were the same as estimated at the time of its purchase. On 30 June 2022, the machine was sold for $130,000. What journal entries will be recorded right from beginning until the sale of machine as per AASB 116 in the following cases: a) If the revaluation was recorded. b) If the revaluation was not recorded. c) What will be the value of Impairment on 30 June 2022 if it was decided not to sell the machine.
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