XYZ Enterprises purchased equipment for $140,000 on July 1, 2013. The equipment is expected to have a four-year life and a residual value of $20,000. Using the double-declining balance method, the net book value of XYZ's equipment on December 31, 2014, would be (omit $ and , in the answer):

XYZ Enterprises purchased equipment for $140,000 on July 1, 2013. The equipment is expected to have a four-year life and a residual value of $20,000. Using the double-declining balance method, the net book value of XYZ's equipment on December 31, 2014, would be (omit $ and , in the answer):

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

Citizen Co. purchased equipment on January 2, 2016, for P500,000. The equipment had an estimated five-year service life. Citizen’s policy for five-year assets is to use the 200% double-declining depreciation method for the first two years of the asset’s life, and then switch to the straight-line depreciation method. In its December 31, year 4 balance sheet, what amount should Citizen report as accumulated depreciation for equipment?
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Year Straight-Line Declining Balance Difference 2018 $ 432 $ 938 $ 506 2019 432 626 194 2020 432 417 (15 ) $ 1,296 $ 1,981 $ 685 Required:2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On January 1, 2017, Loko Corporation acquired equipment at a cost of ₱1,800,000. Loko adopted the sum-of-the-years’ digits method of depreciation for this equipment and had been recording depreciation over an estimated life of eight years, with no residual value. At the beginning of 2020, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2020 would be P150,000 P360,000 P93,750 P225,000
On July 2, 2013, Sable Company purchased a building for $300,000 that had an estimated residual value of $46,000 and an expected useful life of ten years. Sable Company has a December 31st, year end. If Sable Company uses the Declining Balance Method at the straight-line rate, the depreciation expense for year two is: $27000, $28500, $25400, $30000, or none of the above
Truffle Inc. acquired a patent on January 1, 2015 for $7,800,000. It was expected to have a 10 year life and no residual value. Truffle uses straight-line amortization for its patents. On December 31, 2018, the expected future cash flows from the patent are $518,000 per year for the next six years. The present value of these cash flows, discounted at Truffle’s market interest rate, is $2,120,000. What amount, if any, of impairment loss will be reported on Truffle’s 2018 income statement?
Cyberdyne Systems sold a piece of equipment August 1, 2020 for $22,000. The original cost of the equipment was $60,000 and it was purchased on January 1, 2017. The residual value was estimated to be $3,000 and it had a 5 year useful life. Cyberdyne uses the straight-line method. Cyberdyne has a December 31 year end. Instructions Record the sale of the asset in 2020. Note: You do not need to make the journal entries for depreciation expense for 2017, 2018, 2019 and 2020. Assume that these journal entries were already made correctly.
XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation 2. Carrying amount of the equipment on December 31, 2017
how much is the revaluation deficit/impairment loss to be recognized on the income statement as of dec. 31, 2023
A plant asset cost 900,000 when it was purchased on January 1, 2014. It was depreciated by the 150% declining-balance method based on a 8-year life with 45,000 residual value. On April 1, 2020, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement? (Indicate whether gain or loss)
XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: Revaluation surplus to be recognized on the year of revaluation Carrying amount of the equipment on December 31, 2017 1. 2.
Computational. ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. A year after, the replacement cost has declined to 1,700,000. Round off percentage to whole number and to nearest peso if you are required to gross up. Determine the loss due to revaluation
Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year life, with a residual value of $6,300 at the end of ten years. Using the double-declining balance method, the book value at December 31, 2022, would be: (Do not round your intermediate calculations) Multiple Choice $51,520. $8,050. $49,600. $52,000.