The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

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Answer 1

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

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Chapter 6: Job costing Steel Manufacturing uses a job order costing system. During one month, Steel purchased $188,000 of raw materials on credit; issued materials to the production of $215,000 of which $10,000 were indirect. Steel incurred a factory payroll of $159,000, of which $20,000 was indirect labor. Steel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are___.

Answer 2

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 6

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 7

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 8

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 9

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 10

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

Answer 11

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

Answer 12

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 13

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

Solution Summary: The author explains that the original cost of plant asset is 4,000,000. Depreciation is the reduction in value due to regular use and wear and tear.

Concept explainers

Videos

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

To prepare: The footnote disclosure for change in accounting estimate.

Want to see the full answer?

Chapter 21 Solutions

The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

Solution Summary: The author explains that the original cost of plant asset is 4,000,000. Depreciation is the reduction in value due to regular use and wear and tear.

Concept explainers

Videos

The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

The annual depreciation for first 10 years. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

To prepare: The journal entry to record the change in estimate. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Revised expected residual value is $100,000. Revised estimated useful life is 20 years.

To prepare: The footnote disclosure for change in accounting estimate.

Want to see the full answer?

Chapter 21 Solutions

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.