Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of $5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations:
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Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance
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- Alteran Corporation purchased office equipment for $1.2 million at the beginning of 2022. The equipment is being depreciated over a 10-year life using the double-declining-balance method. The residual value is expected to be $600,000. At the beginning of 2024 (two years later), Alteran decided to change to the straight-line depreciation method for this equipment. Required: Prepare the journal entry to record depreciation for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $6,400,000. The building has a residual value of $475,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,980,000. Required:Calculate the depreciation on the building and building addition for 2021 and 2022 assuming that the addition did not change the life or residual value of the building.Oklahoma Company purchased a machine on January 1, 2020. The machine had a cost of $520,000 with a $20,000 residual value. The estimated useful life of the machine was eight years. On January 1, 2022, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation. Required: Prepare the journal entry to record the annual depreciation on December 31, 2022. Show your calculations before you post the journal entry.
- On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of pold building $20,000 Arcchitects fees $35,000 Legal Fees for title investigation and purchase contract $5,000 Contruction Cost $1,390,000 Salvaged materials resulting from demolition were sold for $10,000. Nelson should record the cost of the land and new building, respectively, as A) $330,000 and $1,425,000.…Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-balance method instead of the straight-line method.Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $26,000. Its estimated residual value was $8,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,000 units in 2021 and 1,450 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. 2 Required A Required B Required C Calculate depreciation expense for 2021 and 2022 using the straight-line method. Depreciation Expense Per Year W S X #3 o E D C $ 4 R 2021 U * 00 8 N J FA 1 - 09 K M ** -O L V . P
- On June 30, 2021, Rosetta Granite purchased equipment for $120,000. The estimated useful life of the equipment is eight years and no residual value is anticipated. An important component of the equipment is a specialized highspeed drill that will need to be replaced in four years. The $20,000 cost of the drill is included in the $120,000 cost of the equipment. Rosetta uses the straight-line depreciation method for all equipment.Required:1. Calculate depreciation for 2021 and 2022 applying the typical U.S. GAAP treatment.2. Repeat requirement 1 applying IFRS.At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.9 million. $10.9 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $2.9 million residual value. In 2021, the company switched to the double-declining-balance depreciation method.What is depreciation on the building for 2021? Answer is not complete. Depreciation not attemptedTamarisk Corp. (TC) purchased a building in early January 2020, and classified the cost of the basic structure of $128,000 in an account called Buildings. TC accounts for this class of asset using the revaluation model, revalues the class every three years, and uses straight-line depreciation. The building structure is expected to have a useful life of 25 years with no residual value. TC has a December 31 fiscal year end. The asset's fair value at December 31, 2022, is $114,540. (a1) Calculate TC's depreciation for the first three years. TC's annual depreciation $ Save for Later 2020 2021 2022 Attempts: 0 of 1 used Submit Answer
- At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2021, the estimates of useful life and residual value were changed to 20 years and $500,000, respectively. What is depreciation on the building for 2021?At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12.9 million. $9.9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a $1.9 million residual value. In 2024, the company switched to the double-declining-balance depreciation method. What is depreciation on the building for 2024?On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $21,900. The drill press is expected to last 10 years and has a residual value of $5.100. During its 10- year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,500 and 75,000 units, respectively, were produced. Required: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.) 2018 2019 Depreciation Book Values