Assume that equipment is purchased at a cost of $10,000 with no residual value and is depreciated at a straight line rate of 10%.The equipment was sold for cash on Oct 12 of the eighth year of its use. The balance of accumulated depreciation account as of the preceding Dec 31 (end of 7th yr) is $7,000. Required: a. Entry to update the depreciation for the 9 months of the current year . b. Assuming that the equipment was sold for $ 2,800 on Oct 12, determine the gain or loss on the sale of equipment. c. Journalize the entry to record the sale. Hint: calculate book value of the equipment as on oct 12 and compare with the amount of cash getting in return.

A building is acquired on January 1 at a cost of $830,000 with an estimated useful life of eight years and salvage value of $75,000. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year P 4- Depvention for die Perod Beginning of Period Book Value Rate(%) prt sc delete backspace home

A building is acquired on January 1 at a cost of $1,030,000 with an estimated useful life of eight years and salvage value of $92,700. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.) Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate (%) Beginning of Period Book Value Depreciation Expense End of Period Accumulated Depreciation Book Value

On August 3, Cinco Construction purchased special-purpose equipment at a cost of $9,900,000. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $20,000.   a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch to straight-line when it will maximize depreciation expense. c. Which of these two depreciation methods (straight-line or double-declining-balance) results in the highest net income for financial reporting purposes during the first two years of the equipment’s use?

If a fixed asset, such as a computer, were purchased on January 1st for $2,101.00 with an estimated life of 4 years and a salvage or residual value of $107.00, what is the journal entry for monthly expense under straight-line depreciation? Select the correct answer. A. Depreciation Expense$41.54 Accumulated Depreciation$41.54   B. Accumulated Depreciation$41.54 Depreciation Expense$41.54   C. Accumulated Depreciation$498.50 Depreciation Expense$498.50   D. Depreciation Expense$498.50 Accumulated Depreciation$498.50

Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $107,600, has an estimated useful life of 12 years, has an estimated residual value of $9,200, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ b. Assuming that the equipment was sold on April 1 of the fifth year for 67,585. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

Equipment acquired on January 8 at a cost of $150,800, has an estimated useful life of 15 years, has an estimated residual value of $8,900, and is depreciated by the straight-line method. a.  What was the book value of the equipment at December 31 the end of the fourth year? - Assuming that the equipment was sold on April 1 of the fifth year for 105,335. 1.  Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. 2.  Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

Knife Edge Company purchased tool sharpening equipment on July 1, 20Y5, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900. Instructions: a.  Determine the amount of depreciation expense for the years ended December 31, 20Y5, 20Y6, 20Y7 and 20Y8 by the straight-line method.   Depreciation Expense 20Y5 $fill in the blank 1 20Y6 $fill in the blank 2 20Y7 $fill in the blank 3 20Y8 $fill in the blank 4 b.  Determine the amount of depreciation expense for the years ended December 31, 20Y5, 20Y6, 20Y7 and 20Y8 by the double-declining-balance method. Round the double-declining-balance depreciation rate to six decimal places and round your final answers to the nearest whole dollar.   Depreciation Expense 20Y5 $fill in the blank 5 20Y6 $fill in the blank 6 20Y7 $fill in the blank 7 20Y8 $fill in the blank 8

Partial-Year Depreciation Equipment acquired at a cost of $97,000 has an estimated residual value of $6,000 and an estimated usef life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 3 If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-li method. Depreciation Year 1 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double- declining-balance method. Depreciation Year 1 2$4 Year 2 eck My Work Previous Ne All work saved. Save and Exit Submit Assignment for

Šale of Equipment Equipment was acquired at the beginning of the year at a cost of $550,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,205. a. What was the depreciation for the first year? Round your answer to the nearest cent. b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $95,704. Round your answer to the nearest cent. Enter your answer as a positive amount. $ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.