Guide MeNotifUMPI Corporation purchased machinery that was installed and ready for use onJanuary 1, 2018, at a total cost of $285,000. Salvage value was estimated at$45,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2019 (year 2), UMPI should recorddepreciation expense on this machinery of✓ 96,00057,600☐ 68,40048,000

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Answered: Guide Me Notif UMPI Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crane Company purchased a machine on July 1, 2020, for $900000. The machine has an estimated useful life of five years and a salvage value of $190000. The machine is being depreciated from the date of acquisition by the 150% declining-balance method. For the year ended December 31, 2020, Crane should record depreciation expense on this machine of O $106500. O $180000. O $270000. O $135000.
Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The machine has an estimated life of five years and an estimated salvage value of $6,600. Required: a. Calculate the depreciation expense for each year of the asset's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required C Calculate the depreciation expense for each year of the asset's life using Straight-line depreciation. Depreciation Expense Year 1 2 3 4 5
Legislate Company purchased equipment for $80,000 on January 1, 2017, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $4,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2019 will be: Group of answer choices $11,520 $18,240 $10,944 $19,200
Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage value is $51000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $297000 $333000 $288000 $252000
ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost of P69,000. Salvage value was estimated at P9,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2021, ABC should record depreciation expense on this machinery of O P18,000 O P14,400 O Answer not given O P27,600 O P16,560
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
Speedbag, Incorporated purchased equipment at a cost of $60,000 on July 1, 2023. The expected useful life is 4 years and the asset is expected to have salvage value of $10,000. Speedbag depreciates its assets using the straight-line method. What is the accumulated depreciation for this asset on December 31, 2024? Multiple Choice $30,000 $12,500 $25,000 $18,750
Carla Vista Corporation purchased a truck at the beginning of 2025 for $110100. The truck is estimated to have a salvage value of $4000 and a useful life of 118000 miles. It was driven 22000 miles in 2025 and 30000 miles in 2026. Depreciation expense for 2025 is (Round intermediate calculations to 3 decimal places, e.g. 0.245 and final answer to O decimal places, e.g. 1,525.) O $21273. O $26970. O $46748. O $19778.
Record the general journal entry to record the depreciation expense for the equipment for the year ending 30 June 2022 if Broadway uses the straight-line depreciation method. Not all boxes need to be completed
On July 1, 2020, Concord Corporation purchased factory equipment for $28300O. Salvage value was estimated to be $7900. The equipment will be depreciated over five years using the double-declining balance method. Counting the year of acquisition as one-half year, Concord should record depreciation expense for 2021 on this equipment of O $58180. O $67920. O $90560. O $113200.
On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life of 10- years and an estimated salvage value of P50,000. The depreciation applicable to this building was P240,000 for 2023 computed under the sum-of-the year’s digit method. How much is the carrying value of the building as of December 31, 2022?
Alt Company purchased a new piece of manufacturing machinery on January 2, 2021. The machine had a total cost of $392,000 and an estimated salvage value of $125,000. Its useful life is estimated to be 6 years; over its life, it should produce 2,000,000 units of product. During 2022, the machine produced 309,000 units. Show calculations on tab for the amount of depreciation expense Alt will recognize in 2022 under straight-line, units-of-production, and double-declining depreciation methods. Depreciation was recorded normally for 2021. You are calculating depreciation for the second year in the machine’s life.

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