Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful life of 6 years and a residual value of $5,000. One of the tractors has not performed as expected, so Javlin sold the tractor after 2 years fir $18,000. Javlin sold the remaining tractors for $5,000 at the end of the 6 years. Javlin uses group depreciation on a straight-line basis. Required: a. Prepare the journal entry for the purchase. b. Prepare the journal entry for the first and second year's depreciation. c. Record the journal entry for the disposal of the tractor. d. Record the journal entry for the third year's depreciation

Crane Inc. wants to purchase a new machine for $40,700, excluding $1,500 of installation costs. The old machine was purchased 5 years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,300, and Crane Inc. expects to sell it for that amount. The new machine will decrease operating costs by $9,700 each year of its economic life. The straight-line depreciation method will be used for the new machine for a 6-year period with no salvage value. Click here to view the factor table. (a) Determine the cash payback period. (Round cash payback period to 2 decimal places, e.g. 10.53.) Cash payback period (b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return (c) years The investment Assuming the company has a required rate of return of 10%, determine whether the new machine should…

Tech Engineering Company is considering the purchase of a new machine. The new machine, which falls into the MACRS 5-year class, has an estimated life of 5 years, and it costs $40,000 to purchase the machine. Tech plans to sell the machine at the end of the fifth year for $12,000. Initial decrease in accounts payable = $3,000, which must be restored at the end of the project's life. The applicable depreciation rates are 0.20, 0.32, 0.19, 0.12, 0.11, and 0.06. The new machine is expected to generate before-tax cash savings of $13,000 per year. The company's tax rate is 30%. What is the year 5 total free cash flow of the proposed project? Group of answer choices $24,540 $32,540 $22,540 $27,540 $29,540

Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $3,000 estimated residual value. (Do not round intermediate calculations.) 4. What should be the book value of (a) the land and (b) the building at the end of year 2? 3 Straight-Line Depreciation 4(a). Land 4(b). Building

Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. record the cost of the o mine and year end adjusting entry

Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be us for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determir that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. $ 171,000 B. Determine the depreciation expense for the final fifteen years of the asset's life. 11,400 X Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Depreciation Expense 171,000 X Accumulated Depreciation-Warehouse 171,000

New Morning Bakery is in the process of closing its operations. It sold Its two-year-old bakery ovens to Great Harvest Bakery for $700,000. The ovens originally cost $910,000, had an estimated service life of 10 years, had an estimated residual value of $60,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet < Record the sale of ovens. Note: Enter debits before credits.

The Loban Company purchased four cars for $9,000 each, and expects that they would be sold in three years for $1,500 each. The company uses group depreciation on a straight-line basis. 1. Prepare journal entries to record the acquisition and the first year's depreciation. 2. If one of the cars is sold at the beginning of the second year for $7,000, what journal entry is required?

At the beginning of Year 1, Sophie Mopey Company buys a truck for $100,000 and estimates it has a useful life of 10 years and a salvage value of $6,000. The company estimates it will be able to drive the truck 188,000 miles before it has to be replaced, and drives it 30,000 miles in Year 1. Which of the following would be recorded under STRAIGHT-LINE depreciation? O Depreciation Expense of $15,957 in Year 1 O Depreciation Expense of $9,400 in Year 1 O Depreciation Expense of $20,000 in Year 1 O Depreciation Expense of $10,000 in Year 1 O Depreciation Expense of $18,800 in Year 1 O Depreciation Expense of $15,000 in Year 1 QUESTION 2 B 2

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