Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $4,800. The cost of the building was $96,000. The current book value of the equipment (January 1, 2021) is $81,600. At the time of purchase, the asset was estimated to have a zero salvage value. On January 1, 2021, the company decided to reduce the original useful life by 25% and to establish a salvage value of $4,800. The firm also decided double-declining-balance depreciation was more appropriate. Ignore tax effects. 1. Prepare the journal entry, if any, to report the accounting change under GAAP. 2. Record the annual depreciation for 2021.

A microcomputer was purchased on January 1, 2017 at a cost of    $11,000. It is expected to have a useful life of 5 years and a    residual value of $1000. The microcomputer is depreciated  using the straight line method.  Assume the microcomputer is disposed of, after year end depreciation has been recorded on January 1, 2020.     REQUIRED: Give the general journal entry to record the sale of the microcomputer under the following unrelated circumstances:       1. The microcomputer is sold for $1,000.       2. The microcomputer is sold for $7,300.       3. The microcomputer is abandoned   Hint: Calculate Accumulated Depreciation balance at January 1, 2020

XYZ Company purchased a machine on January 1, 2022, for $50,000. The machine has an estimated useful life of 5 years and an estimated salvage value of $5,000. Calculate the annual straight-line depreciation expense for the machine.

Babcock Company purchased a piece of machinery for $40,500 on January 1, 2019, and has been depreciating the machine using the sum-of-the-years'-digits method based on a five-year estimated useful life and no salvage value. On January 1, 2021, Babcock decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life is changed to a total of six years from the date of purchase. Ignore income taxes. Required:1. Prepare the appropriate journal entry, if any, to record the accounting change under GAAP.2. Prepare the journal entry to record depreciation for 2021.

On January 1, 2020, Grand Manufacturing purchased a machine for $870,000 that it expected to have a useful life of five years. The company estimated that the residual value of the machine was $120 000 Grand Manufacturing used the machine for two years and sold it on January 1, 2022, for $340.000 As of December 31, 2021, the accumulated depreciation on the machine was $300,000 Read the requirements 1. Calculate the gain or loss on the sale of the machinery (Use a minus sign or parentheses for a loss) Gain or (loss) on the sale of the machinery Requirements 1. Calculate the gan or loss on the sale of the machinery 2. Record the sale of the machine on January 1, 2022 Print Done

On January 1, 2021, Cake Company acquired a factory equipment at a cost of P450,000. The equipment is being depreciated using the straight-line method over its projected useful life of 10 years. On December 31, 2022, a determination was made that the asset's recoverable amount was only P288,000. On December 31, 2023, the assets recoverable amount was determined to be P333,000 and management believes that the impairment loss previously recognized should be reversed. What amount of impairment loss should be recognized on December 31, 2022?

On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a useful life of 10 years and no residual value. The company uses the cost model to account for the machinery and the straight-line method is used in depreciating the machinery. On Dec 31, 2022, the company tested the machinery for possible impairment and determined that the recoverable value of the said machinery amounted to P150,000. On Dec 31, 2023, it was revealed that the recoverable value of the machinery had increased to P187,500. Q-29. 8.How much is the impairment loss reported in 2022? 9.What is the carrying amount of the machinery on Dec 31, 2023 before reversal of impairment? 10.What is the carrying amount of the machinery on Dec 31, 2023 on the basis that it was not impaired? 11.What amount of gain on reversal of impairment should be reported in profit or loss for 2023?

PLO Company purchased a computer for Php60,000 and placed it in operation on 2021 January 2. Depreciation was recorded for 2021 and 2022 using the straight-line method, a six-year life, and an expected salvage value of Php2,400. The introduction of a new model of this computer in 2023 caused the company to revise its estimate of useful life to a total of four years and to reduce the estimated salvage value to zero. Compute the depreciation expense on the computer for 2023.

Wildhorse Company purchaseda hot tub for $ 11,790 on January 1, 2016. Straight-line depreciation is used, based on a 6-year life and a $ 1,890 salvage value. In 2018, the estimates are revised. Wildhorse now feels the hot tub will be used until December 31, 2020, when it can be sold for $ 885. Compute the 2018 depreciation. Depreciation expense, 2018 %24

.On January 1, 2020, Dan Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and a residual value of 10% of the purchase price. Depreciation was computed using the double decline balance method. At the start of 2021, due to obsolescence and physical damage, the machinery is found to be impaired. Dan Company determined the following information with respect to the machinery at year end of 2020.   Fair value less cost of disposal                                               P 2,800,000   Value in use                                                                                  2,650,000   Required: a) Prepare journal entries for the years 2020 and 2021. b) What amount of depreciation expense would be shown in the Income Statement ending December 31, 2021?