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.

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
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.
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
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Gant Co. purchased a machine on July 1, 2022, for $400,000. The machine has an estimated useful life of five years and a salvage value of $80,000. The machine is being depreciated from the date of acquisition using the double declining-balance method. For the year ended December 31, 2023, Gant should record depreciation expense on this machine of:
Ayayai Corporation purchased a new plant asset on April 1, 2023, at a cost of $960,000. It was estimated to have a useful life of 20 years and a residual value of $360,000, a physical life of 30 years, and a salvage value of $0. Ayayai's accounting period is the calendar year. Ayayai prepares financial statements in accordance with IFRS. (a) Calculate the depreciation for this asset for 2023 and 2024 using the straight-line method. (Round answers to O decimal places, e.g. 5,275.) Depreciation 2023 $ 2024 $ Save for Later Attempts: 0 of 1 used Submit Answer
Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.Required: Calculate the depreciation expense for each year of the asset's life using A. Straight-line depreciation. B. Double-declining-balance depreciation. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method.
Oriole Company purchased a new machine on October 1, 2025, at a cost of $68,880. The company estimated that the machine has a salvage value of $6,240. The machine is expected to be used for 48,880 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2025 and 2026, assuming a December 31 year-end. Depreciation expense under the straight-line method $ 2025 2026
The fisher company purchased a machine on October 1, 2023 for $60,000. At the time of acquistion, the machine was estimated to have a useful life of five years and an estimated salvage of $4,000. Fisher has recorded deprectiation using the straight-line method. On april 1, 2025 the machine was solf for $40,000 the company's fiscal year end is dec. 31. it calculates depreciation on a monthly basis and no depreciation has been recorded for 2025 yet. Record the hournal entries for 2025 related to the disposal of the machine.