A company purchased PPE four years ago for$100 000. PPE was depreciated on thestraight-line basis over ten years. Thecompany decided to revalue PPE at the end ofthe fourth year. The net replacement cost atthat date was $75 000. Show the journal entries
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- Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.Sokolsky Excavating purchased a used dump truck for $90,000 on January 1, 2018. Thecompany has depreciated the dump truck using the straight-line method over its estimated10-year life with a $6,000 residual value. Sokolsky sold the dump truck on January 1,2021, for $68,700. Total accumulated depreciation on the dump truck on the date of salewas $25,200. What gain or loss should be recorded on the sale?a. A gain of $3,900b. A loss of $3,900c. A loss of $21,300d. A gain of $21,300Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is expected to have a salvage value of 15,800 at the end of its five-year useful life. if the asset id depreciated on the double-declining- balance method, the assets book value on Dec 31, year 2 will be?
- At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required: Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.Morrell Corporation sold a computer at the end of its useful life for $300. The computer had an original capitalized cost of $5,000, and its Accumulated Depreciation was $4,600. Record the journal entry for the sale of the computer.Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated using the straight-line method assuming it has a five-year life with a $1,400residual value. Taylor sold the machine on January 1, 2018, for $7,600.Q7-62. What gain or loss should Taylor record on the sale?a. Gain, $800b. Loss, $1,160c. Loss, $520d. Gain, $1,160
- Podey Company has a machine that originally cost $20,000, has accumulated depreciation of $14,000 at the beginning of the current year, and is being depreciated at $2,000 per year with the straight-line method. If the company sells the machine for $2,400 on September 30, it will recognize a loss on disposal of $2,100. gain on disposal of $2,400. loss on disposal of $3,600. gain on disposal of $3,600.Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machinewas purchased for R.O:120,000 on January 1, 20o07, and was depreciated on a straight-line basis for 1o years with no residual value. f the machine was sold for R.O 33.000, what was the amount of the gain or loss recorded at the time of the sale? Select one O a RO 69,00. b. RO 27.000. O CRO33,00. O d RO 81,00.Marlow Co. purchased a point of sale system in jan1 for 6,400. This system has a useful life of 5 years and a salvage value of 900. what would be the depreciation expense for the second year of its useful life using the double declining balance method
- n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/lossOn April 30, Year 1, Tilton Products purchased machinery for $55,000. The useful life of this machinery is estimated at 8 years, with an $5,000 residual value. Titon uses a calendar year and for financial reporting. in Year 7, Tilton Products sells this machinery for $4,000. At the date of sale, the machinery had been depreciated by Tilton Products to its estimated residual value of $5.000. This sole results in Multiple Choice A $1,000 loss in the financial statements; a $1,000 gain in the income tax retum A $1,000 loss in both the company's financial statements and its income tax return No gain or loss in either the financial statements or the income tax return A $1,000 loss in the financial statements, but no gain or loss in the income tax returnOn 1/1/18, Cumberland Corp. purchased a machine for $60,000. The machine cost Cumberland $2,800 for delivery. At the end of 10 years, Cumberland expects to sell the machine for $2,000. Compute depreciation expense for 2019 using the double declining balance method: