Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment Useful life Salvage value at end of useful life Annual straight-line depreciation Annual income generated by asset (before deducting depreciation) Year 1 2 3 4 5 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table. Income Before Depreciation $900,000 Annual Depreciation 5 years 0 $180,000 $270,000 Income Net of Depreciation Based on Net Book Value Average Net Book Imputed Interest Value Charge Residual Income Based on Gross Book Value Imputed Interest Charge Average Gross Book Value Residual Income

Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment Useful life Salvage value at end of useful life Annual straight-line depreciation Annual income generated by asset (before deducting depreciation) Year 1 2 3 4 5 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table. Income Before Depreciation $900,000 Annual Depreciation 5 years 0 $180,000 $270,000 Income Net of Depreciation Based on Net Book Value Average Net Book Imputed Interest Value Charge Residual Income Based on Gross Book Value Imputed Interest Charge Average Gross Book Value Residual Income

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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Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment Useful life Salvage value at end of useful life Annual straight-line depreciation Annual income generated by asset (before deducting depreciation) Year 1 2 3 4 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table. LO 5 Income Before Depreciation $ Annual Depreciation 246,000 $ 246,000 246,000 246,000 246,000 $820,000 164,000 $ 164,000 164,000 164,000 164,000 5 years 0 $164,000 $246,000 Income Net of Depreciation 82,000 82,000 82,000 82,000 82,000 Based on Net Book Value Average Net Book Imputed Interest Value Charge Residual Income Based on Gross Book Value Imputed Interest Charge Average Gross Book Value Residual Income
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Hilarious Company provided the following data pertaining to machinery on the date of revaluation: CostReplacement cost Machinery 4, 500, 000 7, 200, 000 Accumulated depreciation 900, 000 Age of asset 3 years Revised Life of the asset 10 years Required: Appreciation or revaluation increase Carrying amount Depreciated replacement cost Revaluation surplus What is the original life of the asset? Prepare the journal entry to record the revaluation Prepare the entry to record the annual depreciation subsequent to revaluation Prepare the entry to record the piecemeal realization of the revaluation surplus
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A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING BALANCE METHOD AND DOUBLE DECLINING BALANC EMETHODTO DETERMINE:A) THE DEPRECIATION CHARGES FROM YEAR 1 THROUGH 4B) THE BOOK VALUE AT THE END OF EACH YEAR OF LIFE.C) COMPARE THE CASH FLOWS BETWEEN THE THWO METHODS
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You are an accountant for ABC Corp. Your purchasing department has procured products invoiced for $25,000 with 2/10 Net 30 terms. If you pay the invoice within 15 days, your payment would be: $25,500. $20,000. $24,500. $25,000. Accounting depreciation systematically allocates the cost of an asset in time over its useful life while economic depreciation deals with: The estimated loss of value of an asset minus the revenue it produces. The estimated salvage value of an asset at its end-of-life. The change of an asset’s value based on fair market price. The value of an asset matched to the revenue it creates indirectly.
Required information [The following information applies to the questions displayed below.] Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used. Year 1 Year 2 Year 3 Year 4 Year 5 Totals 8 O Income Before Depreciation $ reciation Expense 0 $ 6 delete home 10
Find the book value for the asset shown in the accompanying table, assuming that MACRS depresiing is being used: View the table attached: Asset Installed Cost Recovery Period (Years) Elapsed time since purchase (Years) A $902,000 5 3
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) A piece of equipment is purchased for $110,000 and has an estimated salvage value of $10,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method with a recovery period of seven years.
1. A commercial company plans to buy the device for $ 20,000 and is expected to sell it for $ 8,000 in the future. The useful life of the device is estimated at 8 years. It is desirable to calculate the depreciation of each year and the book value of each year using any of the following methods: a) Linear b) Sum of year figures c) Trial balance