Summit Industries purchased a delivery van on January 1, 2022. Summit paid $24,000 for the van. The van is expected to have a $4,000 residual value and a 5-year life. Summit has a December 31 fiscal year-end. Using the straight-line method, what is the 2023 depreciation expense?
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what is the 2023 depreciation expense ?
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- 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?On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.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?
- How much is the 2020 depreciation expense?GT Industries purchased a truck on January 1, 2019. GT paid $30,000 for the truck. The truck is expected to have a $3,000 residual value and a 6-year life. GT has a December 31 fiscal year-end. Using the straight-line method, how much is the 2020 depreciation expense? provide answerWhat is the answer?
- Evergreen Systems purchased machinery for $92,000 on January 1, 2020. Additional costs included $4,500 in delivery charges and $8,000 for installation and setup. The machinery is expected to have a salvage value of $20,000 at the end of its 4-year useful life. What is the amount of accumulated depreciation on December 31, 2021, using the straight-line method? HelpBasalt Inc bought a new vehicle on September 1, 2021 for $50,000. The vehicle is estimated to have a residual value of $5,000 at the end of its life and will last 7 years. Using straight-line depreciation, what is the depreciation expense at the year end of December 31, 2021 and 2022, respectively?Evergreen Systems purchased machinery for $92,000 on January 1, 2020. Additional costs included $4,500 in delivery charges and $8,000 for installation and setup. The machinery is expected to have a salvage value of $20,000 at the end of its 4-year useful life. What is the amount of accumulated depreciation on December 31, 2021, using the straight-line method?
- On January 1, 2025, a machine was purchased for $1,040,000 by Metlock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Ivanhoe Inc. for 3 years on January 1, 2025, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2025. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. How much should Metlock report as income before income tax on this lease for 2025? Income before income tax $ (b) eTextbook and Media List of Accounts Date 130,000 Record the journal entries Ivanhoe would record for 2025 on this lease, assuming its incremental borrowing rate is 5% and the rate implicit in the lease is unknown. (List all debit entries…How much is the 2019 depreciation expense??Sandhill Ltd. purchased a delivery truck on January 1, 2021, at a cost of $80,640. The truck is expected to have a residual value of $7,380 at the end of its 4-year useful life. Sandhill has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate Calculate the depreciation for each year of the truck’s life. (Round answers to 0 decimal places, e.g. 5,275.) Depreciation expense 2021 $enter a dollar amount 2022 $enter a dollar amount 2023 $enter a dollar amount 2024 $enter a dollar amount
