QUIZ 2: 1. On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320. Buckle Co. paid cash of P18,000 and executed a one-year non-interest-bearing note for the balance. The going rate of interest was 18%. The machine has a 6-year life and no residual value. Depreciation expense on the SYD basis at the end of 20x1 is:
QUIZ 2: 1. On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320. Buckle Co. paid cash of P18,000 and executed a one-year non-interest-bearing note for the balance. The going rate of interest was 18%. The machine has a 6-year life and no residual value. Depreciation expense on the SYD basis at the end of 20x1 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUIZ 2:
1. On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320. Buckle Co.
paid cash of P18,000 and executed a one-year non-interest-bearing note for the balance. The
going rate of interest was 18%. The machine has a 6-year life and no residual value.
Depreciation expense on the SYD basis at the end of 20x1 is:
The next four items are based on the following information:
Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows:
Асcum.
Depreciation
64,000
36,000
33,600
Acquisition date Residual value
20,000
10,000
14,000
Asset
Cost
100,000
55,000
70,000
20X6
20X5
20X5
Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation
expense in the year of an asset's disposition. The estimated useful life of each depreciable asset is 5
years.
2. Dirt depreciates asset A on the double-declining-balance method. How much depreciation
expense should Dirt record in 20X8 for asset A?_
3. Dirt depreciates asset A on the double-declining-balance method. How much depreciation
expense should Dirt record in 20X9 for asset A?
ABC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc41d937b-861b-4bb4-9b44-23e2047b3b22%2F241bf4bb-2b19-4ffa-a0b9-3e059bef628c%2F454r25m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUIZ 2:
1. On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320. Buckle Co.
paid cash of P18,000 and executed a one-year non-interest-bearing note for the balance. The
going rate of interest was 18%. The machine has a 6-year life and no residual value.
Depreciation expense on the SYD basis at the end of 20x1 is:
The next four items are based on the following information:
Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows:
Асcum.
Depreciation
64,000
36,000
33,600
Acquisition date Residual value
20,000
10,000
14,000
Asset
Cost
100,000
55,000
70,000
20X6
20X5
20X5
Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation
expense in the year of an asset's disposition. The estimated useful life of each depreciable asset is 5
years.
2. Dirt depreciates asset A on the double-declining-balance method. How much depreciation
expense should Dirt record in 20X8 for asset A?_
3. Dirt depreciates asset A on the double-declining-balance method. How much depreciation
expense should Dirt record in 20X9 for asset A?
ABC
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