Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 yearsand a salvage value of $56,400. Swifty accounting period is the calendar year.(a)4Compute the depreciation for this asset for 2025 and 2026 using the sum-of-the-years'-digits method. (Do not round intermediatecalculations. Round final answers to 0 decimal places, e.g. 45,892.)Depreciation for 2025Depreciation for 2026IA$$

Name: Swifty Company purchased a new plant asset on April 1, 2025, at a cos
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 yearsand a salvage value of $56,400. Swifty accounting period is the calendar year.(a)4Compute the depreciation for thi

Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Business

Accounting

Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 years and a salvage value of $56,400. Swifty' accounting period is the calendar year. (a) Compute the depreciation for this asset for 2025 and 2026 using the sum-of-the-years-digits method. (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 45,892.) Depreciation for 2025 $ Depreciation for 2026

Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 years and a salvage value of $56,400. Swifty' accounting period is the calendar year. (a) Compute the depreciation for this asset for 2025 and 2026 using the sum-of-the-years-digits method. (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 45,892.) Depreciation for 2025 $ Depreciation for 2026

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Novak Company purchased a piece of equipment at the beginning of 2022. The equipment cost $402,120. It has an estimated service life of 8 years and an expected salvage value of $74,160. The sum-of-the-years-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $36,440 will be depreciated for a particular calendar year. Determine for what particular year the depreciation amount for this asset will be $36,440. Year of depreciation
Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected to have a service life of 12 years and a salvage value of $54,000. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.) Depreciation for Year 1 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 2 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 3 $enter a dollar amount rounded to 0 decimal places Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. Depreciation for Year 1 $enter a dollar amount Depreciation for Year 2 $enter a dollar amount Depreciation for Year 3 $enter a dollar amount Part 3 Compute the amount of depreciation for each of Years 1 through 3 using the…
Marigold Industries presents you with the following information. Complete the table for the year ended December 31, 2027. The company depreciates all assets using the half-year convention. (Round answers to O decimal places, e.g. 45,892.) Description Machine A Machine B Machine C Machine D Date Purchased 2/12/25 8/15/24 7/21/23 Cost $148,200 89,600 227,760 (c) Salvage Value $16,640 21,840 25,000 71,760 Life in Years 10 5 8 5 Depreciation Method SL DDB SYD (a) Accumulated Depreciation to 12/31/26 $34,684 30,160 72,800 (e) Depreciation for 2027 (b) (d) (f) (h)
Carla Vista Corporation purchased a truck at the beginning of 2025 for $110100. The truck is estimated to have a salvage value of $4000 and a useful life of 118000 miles. It was driven 22000 miles in 2025 and 30000 miles in 2026. Depreciation expense for 2025 is (Round intermediate calculations to 3 decimal places, e.g. 0.245 and final answer to O decimal places, e.g. 1,525.) O $21273. O $26970. O $46748. O $19778.
On July 1, 2020, Concord Corporation purchased factory equipment for $28300O. Salvage value was estimated to be $7900. The equipment will be depreciated over five years using the double-declining balance method. Counting the year of acquisition as one-half year, Concord should record depreciation expense for 2021 on this equipment of O $58180. O $67920. O $90560. O $113200.
On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life of 10- years and an estimated salvage value of P50,000. The depreciation applicable to this building was P240,000 for 2023 computed under the sum-of-the year’s digit method. How much is the carrying value of the building as of December 31, 2022?
Swifty Corporation purchased a delivery truck for $28,000 on January 1, 2020. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 14,500 in 2020 and 11,000 in 2021. PArt1: Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ ? per mile PART 2: Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense 2020 2021 (1) Straight-line method $ ? $ ? (2) Units-of-activity method $ ? $ ? (3) Double-declining-balance method $ ? $ ?…
Splish Company purchases equipment on January 1, Year 1, at a cost of $612,000. The asset is expected to have a service life of 12 years and a salvage value of $55,080. (a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to O decimal places, e.g. 5,125.) Your answer is correct. Depreciation for Year 2 (b) Depreciation for Year 1 Depreciation for Year 3 (c) eTextbook and Media Depreciation for Year 1 Your answer is correct. Depreciation for Year 2 Depreciation for Year 3 $ eTextbook and Media $ $ Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years-digits method. Depreciation for Year 2 $ $ $ Depreciation for Year 1 $ 46,410 $ 46,410 Depreciation for Year 3 $ 46,410 85.680 78.540 Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84% and final answers to 0 decimal…
On January 1, 2022, Brent Tours purchased a new yacht for $2,100,000. The new yacht has an estimated useful life of nine years, and the residual value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Brent’s statement of financial position at December 31, 2022, net of accumulated depreciation, for this yacht? $Answer
On May 1, 2025, Crane Company purchased factory equipment for $739700. The asset's useful life in hours is estimated to be 190000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 19000 hours in the first year. If the activity method is used, what is depreciation expense for 2025? (Round the depreciation rate to 4 decimal places e.g. 15.2578.) $52200 $70469 $78300 O $74269
Sheridan Company purchased equipment for $264,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,000. During 2020, Sheridan uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Sheridan is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2020 $ (b) Activity method (units of output) for 2020 (c) Activity method (working hours) for 2020 $ (d) Sum-of-the-years'-digits method for 2022 $ (e) Double-declining-balance method for 2021 %24 %24 %24 %24 %24
UMPI Corporation purchased a new machine for production on 1/1/18. The cost of the machine was $175,000. The salvage value was estimated to be $25,000. Its useful life was estimated to be 5 years and its working hours was estimated at 25,000 hours. The hours used 2018 thru 2023 were 5,750, 5,000, 4,250, 5,500, 4,500, respectively. Year-end is December 31st. Fully depreciate the equipment through the full 5 years. Instructions: Compute the depreciation expense under each of the following methods below. Record the journal entry for each year to record the depreciation expense. 5.1 Straight-Line method 5.2 Activity method 5.3 Double-Declining Balance method