Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.41BP
Journalizing partial-year
During 2016, Dora Company completed the following transactions:
| Jan. 1 | Traded in old office equipment with book value of $55,000 (cost of $124,000 and |
| Apr. 1 | Sold equipment that cost $54,000 (accumulated depreciation of $42,000 through December 31 of the preceding year). Dora received $6,300 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. |
| Dec. 31 | Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $7,000 residual value. Record the transactions in the journal of Dora Company. |
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Journalizing partial-year depreciation and asset disposals and exchanges
During 2018, Lora Company completed the following transactions:
Record the transactions in the journal of Lora Company.
Please solve this
Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an estimated useful life of 8 years and a salvage value of $15,040. Rexford uses the double-declining-balance method of depreciation for all its assets. What will be the depreciation expense for 2017?
a.$15,600
b.$14,400
c.$7,200
d.$10,640
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
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