Salem Amusement Park paid $400,000 for a concession stand. Salem started out depreciating the building using the straight-line method over 20 years with a residual value of zero. After using the concession stand for four years, Salem determines that the building will remain useful for only four more years. Record Salem's depreciation on the concession stand for year five using the straight-line method. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Journal Entry Accounts Debit Credit
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- The XYZ Block Company purchased a new ofce computer and other depreciable computer hardware for 4800 During the third year the computer is declared obsolete and is donated to the local community college Using an interest rate of 15 calculate the PW of the depreciation deductions using each of the following methods Assume that no salvage value was initially declared and that the machine was expected to last five yearThe XYZ Block Company purchased a new office computer and other depreciable computer hardware for $12,000. During the third year, the computer is declared obsolete and is donated to the local community college. Using an interest rate of 10%, calculate the Present Worth of the depreciation deductions. Assume that no salvage value was initially declared and that the machine was expected to last 5 years. Round to nearest dollar. Use STRAIGHT LINE DEPRECIATION to calculate depreciation schedule.My question is this: GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. For the general journal, I record 795 for depreciation expense, Accumulated depreciation- building at 328 and Accumulated depreciation- equipment is 467. But it only says that the building depreciation is correct. Building cost- $44800 Equipment cost- $11200
- On January 1, the Matthews band pays $67,000 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2000. Matthews Band uses straight-line depreciation but realizes at start of the second year that this equipment will only last a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Can you please explain this question in steps so confused.rtyytttrrrrrrCan you please check my work
- Please help meOn January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $660,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $480,000 and is expected to last another 16 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 348,400 189,400 2,242,000 178,000On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $750,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,890,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of Purchase Price Land Building 2 Land Improvements 1 Totals Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Appraised…
- The invoice price of a machine is $50,000. Various other costs relating to the acquisition and installation of the machine including transportation, electrical wiring, special base, and so on amount to $7,500. The machine has an estimated life of 10 years, with no salvage value at the end of that period. The owner of the business suggests that the incidental costs of $7,500 be charged to expense immediately for the following reasons. 1. If the machine should be sold, these costs cannot be recovered in the sales price. 2. The inclusion of the $7,500 in the machinery account on the books will not necessarily result in a closer approximation of the market price of this asset over the years, because of the possibility of changing demand and supply levels. 3. Charging the $7,500 to expense immediately will reduce federal income taxes. Instructions Discuss each of the points raised by the owner of the business.On January 1, ProTech Co. pays a lump-sum amount of $1,550,000 for land, Building A, Building B, and Land Improvements B. Building A has no value and will be demolished. Building B will be an office and is appraised at $482,800, with a useful life of 15 years and a $99,500 salvage value. Land Improvements B is valued at $142,000 and is expected to last another five years with no salvage value. The land is valued at $795,200. The company also incurs the following additional costs. Cost to demolish Building A . $ 122,000 Cost of additional land grading. $174,500 Cost to construct Building C, having a useful life . Cost of new Land Improvements C, having a 10-year of 20 years and a $258,000 salvage value 1,458,000 useful life and no salvage value . 103,500 Required 1. Prepare a table with the following column headings: Land, Building B, Building C, Land Improvements B, and Land Improvements C. Allocate the costs incurred by ProTech to the appropriate columns and total each column. 2.…Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost $800,000. The estimated residual value of the building is $50,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year? Group of answer choices A)$30,720 B)$32,000 c)$58,880 D)$64,000