How will Horton record this transaction? Question:On January 1, 2016, Horton Inc. sells a machine for $24,800.The machine was originally purchased on January 1, 2014, for$44,200. The machine was estimated to have a useful life of 5years and a residual value of $0. Horton uses straight-linedepreciation.How will Horton record this transaction?

Explanation of Straight-Line Depreciation:Straight-line depreciation is a method used to allocate…

Answered: Question: On January 1, 2016, Horton…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated using the straight-line method assuming it has a five-year life with a $1,400residual value. Taylor sold the machine on January 1, 2018, for $7,600.Q7-61. What is the book value of the machine on December 31, 2017?a. $2,100b. $6,440c. $8,400d. $9,800
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Smart Enterprise bought a machine costing $40,000 on 1 January 2015. Themachine has a useful life of 4 years. The supplier which sold the machine hadagreed to take back the machine for $4,000 at the end of the useful life. Thecompany fiscal year-end is 31 December.Compute the depreciation expense, accumulated depreciation and net book valueof the machine for the years 2015, 2016, 2017 and 2018 using:(i) The straight-line method.(ii) The double-declining balance method.
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Quigley Co. bought a machine on January 1,2016 for $1,400,000. it had a 122,600 estimated residual value and 9 year life. An expense account was debited on the purchase date. Quigley uses straight line depreciation. This was discovered in 2018. Prepare the entries related to the machine for 2018. Ignore taxes.
Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the machine will have a $4,000 salvage value at the end of its 10 year useful life. On September 30, 2019 the machine was sold for a gain of $3,500. What must have been the selling price of the machine?
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
On January 1, 2017, Extensive Manufacturing purchased a machine for $780,000 that it expected to have a useful life of four years. The company estimated that the residual value of the machine was $60,000. Extensive Manufacturing used the machine for two years and sold it on January 1, 2019, for $150,000. As of December 31, 2018, the accumulated depreciation on the machine was $360,000. Read the requirements. 1. Calculate the gain or loss on the sale of the machinery. Extensive Manufacturing will record a of $ on the sale of the machinery.

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