Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list No Event View journal entry worksheet General Journal Depreciation expense Accumulated depreciation-computer Debit Credit

Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list No Event View journal entry worksheet General Journal Depreciation expense Accumulated depreciation-computer Debit Credit

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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LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000in 10 years. The LLED company is trying to determine the best method of depreciation. Create atable and calculate the deprecation amount for each year using straight line, double decliningbalance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below thesalvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions.Which is the preferred method of depreciation for LLED?
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A company purchased a new quality inspection system for $750,000. The estimated salvage value was $150,000 after 10 years. Currently the edpected remaining life is 5 years wuth an AOC of $30,000 per year and an esrimated salvage valye of $100,000. The new president has reccomended early replacement of the system with one that costs $400,000 and has a 12 year economic service life, a $35,000 service value, and an wstimated AOC of $50,000 per tear. The MARR for tge corporation is 12% per year. Find tge Current value, Pd, of the defender that makes the challenger competitive with the defender.
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