Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR O (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. DR CR Date Account 0 6 D

Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR O (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. DR CR Date Account 0 6 D

Name: anvasXXORiley Corp. acquired equipment on January 2, Year 1, at a cos
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Description: anvasXXORiley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below.(a) What is the an

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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A plant asset was purchased on January 1 for $59000 with an estimated salvage value of $9000 at the end of its useful life. The current year's Depreciation Expense is $5000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $30000. The remaining useful life of the plant asset is O 10.0 years. O 11.8 years. ○ 4.0 years. O 6.0 years.
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Required information [The following information applies to the questions displayed below] On January 1, Year 1, a company purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $16,000. The equipment is expected to produce 400.000 units during its life. Required: Calculate depreciation for Year 1 and Year 2 using each of the following methods. 3. Units of production (units produced in Year 1, 48,000; units produced in Year 2, 43,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculato Year 1 depreciation expense Depreciation per unit rate Units produced in Year 1 Depreciation in Year 1 Calculate Year 2 depreciation expense: Depreciation per unit rate. Units produced in Year 2 Depreciation in Year 2
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