please answer in text with all working Calculate and record depreciation using the methods of: 1. Straight-line, 2. units-of - production 3. double - declining - balance Sigma Corporation, purchased a machinefor $50,000 on January 1, 2001, with an estimated useful life of 5 years and a salvage value of $5,000. The machine produced 20, 000 units in 2001, 15,000 units in2002, 10,000 units in 2003, 5,000 units in 2004, and 2, 500 units in 2005.

Name: please answer in text with all working Calculate and record depreciati
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: please answer in text with all working Calculate and record depreciation using the methods of: 1. Straight-line, 2. units-of - production 3. double - declining - balance Sigma Corporation, purchased a machinefor $50,000 on January 1, 2001, with an es

Depreciation is depreciation [reduction] in the value of an asset on account of its wear and tear…

Answered: Calculate and record depreciation using…

Business

Accounting

Calculate and record depreciation using the methods of:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

See similar textbooks

Similar questions

When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
A machine which cost RO 20,000 is acquired on 2006. Its estimated salvage value is RO 2000 and its expected life is eight years. The depreciation for the second year according to Sum of the Years Digit Method of Depreciation is ___________. a. RO 10500 b. RO 3500 c. RO 3000 d. RO 7500
At the beginning of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine’s useful life to be five years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced. Show your work below and then record the entries in the journal Calculate the depreciation using the: Straight-line method of depreciation Units-of-production method of depreciation Prepare the necessary December 31 adjusting entry to record depletion for the current year using the general journal.
Crouch Company purchased a new machine on May 1, 1998 for $176,000. At thetime of acquisition, the machine was estimated to have a useful life of ten yearsand an estimated salvage value of $8,000. The company has recorded monthlydepreciation using the straight-line method. On March 1, 2007, the machine wassold for $24,000. What should be the loss recognized from the sale of themachine? a. $0.b. $3,600.c. $8,000.d. $11,600.
On January 1, 2007, Flax Co. purchased a machine for 528,000 and depreciated it by the straight-line method using an estimateduseful life of eight years with no salvage value. On January 1, 2010, Flax determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of 48,000. An accounting change was made in 2010 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2010 ofa.292,000b.308,000c.320,000d.352,000
On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life offive years. The cost of the equipment was $40,000 with a residual value of $5,000.a. Prepare a complete depreciation table under the three depreciation methods listed below. Usea format similar to the illustrations in Exhibits 9–4 , 9–5 , and 9–6 . In each case, assume that afull year of depreciation was taken in 2011.1. Straight-line.2. 200 percent declining-balance. 3. 150 percent declining-balance with a switch to straight-line when it will maximize depre-ciation expense. b. Comment on significant differences or similarities that you observe among the patterns ofdepreciation expense recognized under each of these methods.
Frey, Inc. purchased a machine for $600,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $100,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be: Select one: a. $250,000 Ob. $350,000 c. $280,000 Od. $320,000 $450,000
truck costing $20,000 was purchased on January 1, 2004. It was depreciated using the straight-line method with an estimated useful life of 4 years and a salvage value of $2,000. If the truck is sold at the end of 2005 for $6,000, how much gain or loss will be recognized?
El Dorado Machinery Company purchased a delivery truck at a cost of $35,000 on February 8, 2012. The truck has a useful life of six years with an estimated salvage value of $7.000. Compute the annual depreciation for the first two years using(a) The straight-line method.(b) The 150% declining-balance method.
Equipment with a cost of $160,000, purchased on May 1, 2003, has an estimated residual value of $10,000 and an estimated life of 4 years. It is to be depreciated by the straight-line method. What is the amount of depreciation for the year 2003, during which the equipment was used 3,300 hours? $25,000 O $40,000 $37.500 O $26,667