Kansas Enterprises purchased equipment for $73,000 on January 1, 2024. The equipment is expected to have a five-year life, with a residual value of $7,950 at the end of five years. Using the double-declining balance method, the book value at December 31, 2025, would be: (Do not round your intermediate calculations) Multiple Choice

Kansas Enterprises purchased equipment for $73,000 on January 1, 2024. The equipment is expected to have a five-year life, with a residual value of $7,950 at the end of five years. Using the double-declining balance method, the book value at December 31, 2025, would be: (Do not round your intermediate calculations) Multiple Choice

Name: Kansas Enterprises purchased equipment for $73,000 on January 1, 2024
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Description: Kansas Enterprises purchased equipment for $73,000 on January 1, 2024. The equipment is expected to have a five-year life, with a residual value of$7,950 at the end of five years.Using the double-declining balance method, the book value at December

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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At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Kansas Enterprises purchased equipment for $78,500 on January 1, 2024. The equipment is expected to have a ten-year service life, with a residual value of $6,300 at the end of ten years. Using the straight-line method, the book value at December 31, 2024, would be: Multiple Choice $64,980. $70,650. $72,200. $71,280.
Kansas Enterprises purchased equipment for $78,000 on January 1, 2021. The equipment is expected to have a ten-year life, with a residual value of $7,200 at the end of ten years. Using the double-declining balance method, the book value at December 31, 2022, would be: (Do not round your intermediate calculations) Multiple Choice: $7,800 $49,920. $56,400. $54,000.
Kansas Enterprises purchased equipment for $75,500 on January 1, 2024. The equipment is expected to have a five-year service life, with a residual value of $6,600 at the end of five years. Using the double-declining balance method, depreciation expense for 2025 would be: (Do not round your intermediate calculations) Multiple Choice O O O O $30,200. $18,120. $27,560. Help Save & E $16.536.
Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,500 at the end of ten years. Using the double-declining balance method, depreciation expense for 2021 would be: (Do not round your intermediate calculations) Multiple Choice $8,600. $14,600. $8,050. $16,100.
Kansas Enterprises purchased equipment for $75,500 on January 1, 2021. The equipment is expected to have a five-year life, with a residual value of $8,400 at the end of five years. Using the double-declining balance method, the book value at December 31, 2022, would be:
Cutter Enterprises purchased equipment for $57,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual O value of $7,200.Using the double-declining-balance method, the book value at December 31, 2022, would be:Multiple ChoiceO $20,520.O $21,720. O $19,620.O $11.400
Cutter Enterprises purchased equipment for $99,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $4,800. Using the straight-line method, the book value at December 31, 2021, would be: Multiple Choice $75,360. $74,400. $79,200. $80,160.
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,750 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,775 and $60,950. $7,450 and $52,850. $6,775 and $54,200. $7.450 and $59,600.
Cutter Enterprises purchased equipment for $51,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,300.Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year) Multiple Choice $13,600 and $20,400 respectively. $11,920 and $24,180 respectively. $11,920 and $17,880 respectively. $13,600 and $14,100 respectively.
On January 01, 2019, the AI Wadi Company purchased machinery for OR 45,000. The estimated useful life of the machinery is 8 years and the estimated residual value is OR 5,000. Al Afiya's financial year ends on December 31. The machine is expected to produce 120,000 units during its life. Using the double-declining balance method, depreciation for 2020 would be: Round all computations to the nearest Riyal. Select one: O a. 8,438 O b. 8,750. O c. 7,500. O d. 7,188.