Required informationP8-3 Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO8-2, 8-3[The following information applies to the questions displayed below.)At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Advantage, Inc. Themachines immediately were overhauled, installed, and started operating. The machines were different; therefore, eachhad to be recorded separately in the accounts.Machine A Machine DMachine CAmount paid tor assetInstallation costaRenovation costs prior to use$ 27,200 S 34,0001,5002,9001,4001,400$ 22,3001,0001,900By the end of the first year, each machine had been operating 6,200 hours.P8-3 Part 22. Prepare the entry to record depreciation expense at the end of year 1, assuming the following. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)ESTIMATESResidualValue$1,500Depreciation MethodHachineLifeStraight-line7 years69,000hours9 yeare2,300Unita-of-production2, 200Double-declining-balance

Depreciation is the allocation of cost of asset over the useful life of the asset. It can be done by…

Answered: Required information P8-3 Computing the…

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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! Required information [The following information applies to the questions displayed below.] Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1. Table 2, and Exhibit 10-10.) Asset Used copier New computer equipment Furniture New delivery truck Luxury auto Total Placed in Service November 12 June 6 Maximum cost recovery deduction July 15 October 28 January 31 Basis $ 12,200 18,400 36,400 23,400 74,400 $ 164,800 Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. Note: Round your answer to the nearest whole dollar amount. Check my work a. Assuming no bonus or §179 expense, what is Burbank's maximum cost recovery deduction for this year?
Required information [The following information applies to the questions displayed below.] Evergreen Corporation (calendar year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Machinery Date Placed in Service October 25 February 3 Computer equipment August 17 Used delivery truck* Furniture April 22 *The delivery truck is not a luxury automobile. Asset Depreciation Original Basis $ 84,000 20,500 33,500 167,500 a. What is the allowable depreciation on Evergreen's property in the current year, assuming Evergreen does not elect $179 expense and elects out of bonus depreciation? Note: Round your intermediate calculations to the nearest whole dollar amount.
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
! Required information [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $82,000 Accumulated Depreciation Book Value 0 $82,000 447,000 226,300 185,000 $(160,920) 286,080 (47,400) 178,900 (74,000) 111,000 • Stevens purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $13,000. • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
Required information [The following information applies to the questions displayed below.] Evergreen Corporation (calendar year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) * Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 3 August 17 April 22 Depreciation Original Basis $ 102,000 34,000 47,000 190,000 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation and elects out of §179 expense?
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Saved $9,400 840 720 590 Year 2 units-of-production depreciation expense PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $43,680, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)
DEPRECIATION OF FIXED ASSETS: ASSET INFO: use the following information for all of the depreciation related questions that follow. Keeping Kids Active Company, Inc makes playground balls for children. KKAC, Inc purchased and began using (placed in service) a piece of equipment to help the company make the balls on September 1, 2020. The equipment cost $56,000 to purchase, $4,000 for delivery and installation (combined). At the time of purchase, KKAC estimates this equipment will be used for 4 years and have a salvage value of $6,00O. KKAC expects to make 250,000 playground balls in total with this equipment. *** Determine the Asset Cost (acquisition cost) of this asset. Show your calculations on your PDF upload.
7 Graw Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 2 2. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. Answer is complete but not entirely correct. Year 2 straight-line depreciation expense 2.140 x Type here to search $9,400 840 720 590 $
DEPRECIATION OF FIXED ASSETS: ASSET INFO: use the following information for all of the depreciation related questions that follow. Keeping Kids Active Company, Inc makes playground balls for children. KKAC, Inc purchased and began using (placed in service) a piece of equipment to help the company make the balls on September 1, 2020. The equipment cost $56,000 to purchase, $4,000 for delivery and installation (combined). At the time of purchase, KKAC estimates this equipment will be used for 4 years and have a salvage value of $6,00O. KKAC expects to make 250,000 playground balls in total with this equipment. *** Determine the Asset Cost (acquisition cost) of this asset. Show your calculations on your PDF upload.
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P9-1A Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Lowery Company. Cost of land site, which included an old apartment building appraised at $75,000 $173,000 Legal Fees, including fee for the title search 2, 100 Payment of apartment building mortgage and related interest due at time of sale 9,300 Payment for delinquent property taxes assumed by the purchaser 6,000 Cost of razing the apartment building 17,000 Proceeds from sale of salvaged materials (3,800) Grading to establish proper drainage flow on land site 2, 100 Architect’s fees on new building…
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Blade Date of purchase Jan. 12/21 Jan. 12/21 Jan. 12/21 Depreciation Method* SL DDB SL Cost $ 46,000 32,000 11,400 $ 89,400 Est. Residual Est. Life $ 7,000 15 yrs 10 yrs 5 yrs 2,000 1,200 *SL = Straight-line; DDB = Double-declining-balance On January 7, 2023, the machine blade cracked and it was replaced with a new one costing $11,600 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 18 years instead of 15 years and that the residual value should be increased to $9,200. Required: 1. Prepare the entry to record the purchase of the replacement…

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