Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet: Equipment, P500,000 Accumulated depreciation-equipment, P135,000 In a footnote, Jaen indicates that it uses straight-line depreciation over 10 years and estimates salvage value as 10% of cost. What is the average age of the equipment owned by Jaen? О 7.3 years O 7 years О 2.7 years 3 years

Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet: Equipment, P500,000 Accumulated depreciation-equipment, P135,000 In a footnote, Jaen indicates that it uses straight-line depreciation over 10 years and estimates salvage value as 10% of cost. What is the average age of the equipment owned by Jaen? О 7.3 years O 7 years О 2.7 years 3 years

Name: Jaen Advertising Inc. reported the following on its December 31, 2020
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Description: Jaen Advertising Inc. reported the following on its December 31, 2020, balancesheet:Equipment, P500,000Accumulated depreciation-equipment, P135,000In a footnote, Jaen indicates that it uses straight-line depreciation over 10 yearsand estimates salva

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
On January 1, 2018, Carson Company purchased equipment at a cost of P420,000. The equipment was estimated to have a useful life of five years and a salvage value of P60,000. Carson uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2021? OP336,000 O P360,000 O P288,000 O P240,000
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 (a) $34,220 (b) $ Machine B 8/15/19 (c) 21,630 5 SL 29,870 (d) Machine C 7/21/18 67,200 23,500 8 DDB (e) (f) Machine D (g) 225,570 71,070 5 SYD 72,100 (h)
On January 1, 2020, Swifty Corporation purchased a new machine for $4110000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $141000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Swifty's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? $3969000 $2610600 $2522400 $3316200
On September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value wasestimated to be P400,000. The machinery is depreciated over eight years using the sum of the years’ digitsmethod. Depreciation is computed on the basis of the nearest fullest month. What amount should be recordedas depreciation for 2021?A. 1,450,000B. 1,600,000C. 1,550,000D. 1,400,000
On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated to be $24000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Sunland should record depreciation expense for 2021 on this machinery of O $75667. O $102903. O $97736. O $97972.
Depreciation ProblemA machine which cost $400,000 is acquired on August 1, 2020. Its estimated salvagevalue is $30,000 and its expected life is 8 years.InstructionsCalculate depreciation expense for 2020 and 2021 by each of the followingmethods, showing the figures used.(a) Double-declining balance(b) Sum-of-the-years'-digits
On January 1, 2020, Coronado Industries purchased a new machine for $4290000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $150000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Coronado's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? O $4140000 O $2634000 O $2726000 O $3462000
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
On January 1, 2022, Proton Company purchased a new machine for P2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be P75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Proton's statement of financial position at December 31, 2024, net of accumulated depreciation, for this machine? O P1,695,000 O P1,335,000 O P1,020,000 O P1,244,250
Jojo Ltd. purchased a machinery on January 1, 2020. . Cost = $15,000 • Expected salvage value = $1,000 • Estimated useful life in years = 10 years • Estimated useful life in machine hours = 7,000 hours Question: Compute end of year book value for the first two years using the following methods. You must prepare a depreciation schedule for each method. a. Straight Line b. Declining Balance C. Units of Activity* *For the units of activity method, actual machine hours of use in 2020 and 2021 were 300 hours and 1000 hours respectively.