Question: 8 Marks Corporation acquired estimated life of the On January 2, 2011, Kellogg equipment for $500,000. The equipment is 5 years or 90,000 hours. The estimated residual value is $20,000. What is the book value of the asset on December 31, 2012, if Kellogg Corporation uses the straight-line method of depreciation?

Question: 8 Marks Corporation acquired estimated life of the On January 2, 2011, Kellogg equipment for $500,000. The equipment is 5 years or 90,000 hours. The estimated residual value is $20,000. What is the book value of the asset on December 31, 2012, if Kellogg Corporation uses the straight-line method of depreciation?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

See similar textbooks

Similar questions

Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?
Step by step detailed answer
Need step by step answer
The gain or loss on disposal?
Financial accounting question
Question : 15 Marks
Question:15 marks
Answer? ? Financial accounting question
On Jan 1, 2021, Worsham Manufacturing purchased a new machine with an acquisition value of $350,000. It has been determined that the machine has a residual value of $16,000 with an estimated useful life of 5 years. Assuming the company uses the straight-line method to depreciate this type of asset, what would the book value be at the end of Year 5? O66.800 O 16,000 00 350.000 Question 20 4 pts lyr
Problem 2 Fixed Asset Theory. Assume that at 1/1/x1 P company sells a piece of equipment to S for $900,000. At the time of the sale, the asset was recorded on P's books as follows: Original Cost -AD NBV $600,000 -$200,000 $400,000 The asset has a 3 year remaining life. 1) How much would be the excess depreciation? 2) What would be the correct depreciation expense for 19x1 3) What would be the correct consolidated asset cost at 12/31/x1 4) What would be the corrected accumulated depreciation at 12/31/x2 Please provide the two consolidation journal entries at 12/31/x2: