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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.

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.

FINANCIAL ACCOUNTING
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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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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