Toshiba Corporation acquired office equipment worth ¥2,400,000 on April 1, 2023, with an estimated useful life of 4 years and a salvage value of ¥400,000. On December 31, 2023, Toshiba's accountant needs to record the depreciation expense using the straight-line method for the partial year. Calculate the depreciation expense for the year 2023, prepare the journal entry to record depreciation, and show the book value of the equipment as of December 31, 2023. Nestlé S.A. purchased a new manufacturing equipment for $500,000 on January 1, 2023. The equipment has an estimated useful life of 10 years and a salvage value of $50,000. Nestlé uses the straight-line depreciation method for all its fixed assets. At the end of 2023, the company's accounting department needs to calculate and record the depreciation expense for this equipment. What is the annual depreciation expense, and how should Nestlé record this in their accounting system? What will be the book value of the equipment at the end of 2023? Assume Nestlé prepares its financial statements annually.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Toshiba Corporation acquired office equipment worth ¥2,400,000
on April 1, 2023, with an estimated useful life of 4 years and a salvage
value of ¥400,000. On December 31, 2023, Toshiba's accountant
needs to record the depreciation expense using the straight-line
method for the partial year. Calculate the depreciation expense for the
year 2023, prepare the journal entry to record depreciation, and show
the book value of the equipment as of December 31, 2023. Nestlé
S.A. purchased a new manufacturing equipment for $500,000 on
January 1, 2023. The equipment has an estimated useful life of 10
years and a salvage value of $50,000. Nestlé uses the straight-line
depreciation method for all its fixed assets. At the end of 2023, the
company's accounting department needs to calculate and record the
depreciation expense for this equipment. What is the annual
depreciation expense, and how should Nestlé record this in their
accounting system? What will be the book value of the equipment at
the end of 2023? Assume Nestlé prepares its financial statements
annually.
Transcribed Image Text:Toshiba Corporation acquired office equipment worth ¥2,400,000 on April 1, 2023, with an estimated useful life of 4 years and a salvage value of ¥400,000. On December 31, 2023, Toshiba's accountant needs to record the depreciation expense using the straight-line method for the partial year. Calculate the depreciation expense for the year 2023, prepare the journal entry to record depreciation, and show the book value of the equipment as of December 31, 2023. Nestlé S.A. purchased a new manufacturing equipment for $500,000 on January 1, 2023. The equipment has an estimated useful life of 10 years and a salvage value of $50,000. Nestlé uses the straight-line depreciation method for all its fixed assets. At the end of 2023, the company's accounting department needs to calculate and record the depreciation expense for this equipment. What is the annual depreciation expense, and how should Nestlé record this in their accounting system? What will be the book value of the equipment at the end of 2023? Assume Nestlé prepares its financial statements annually.
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