Blossom Computer Company sold two pieces of equipment in 2028. The following information pertains to the two pieces ofequipment:Machine#1#2Cost$68,800$76,000Purchase Useful SalvageDateLifeValue7/1/241/1/275 yrs.5 yrs.$4,800$4,000DepreciationMethodStraight-lineDate Sold7/1/28Double-declining-balance 12/31/281SalesPrice$16,000$29,600 Compute the depreciation on each piece of equipment to the date of disposal.Machine #1Year20242025202620272028Machine #2Year$2027 $2028AnnualDepreciationAnnualDepreciation$$AccumulatedDepreciationAccumulatedDepreciation

Straight-Line Method (SLM) and Double Declining Balance Method (DDB) are two common methods used for…

Machine Cost #1 #2 $68,800 $76,000 Purchase Useful Date Life 7/1/24 1/1/27 5 yrs. 5 yrs. Salvage Value $4,800 $4,000 Depreciation Method Straight-line Double-declining-balance Date Sold 7/1/28 12/31/28 Sales Price $16,000 $29,600

Machine Cost #1 #2 $68,800 $76,000 Purchase Useful Date Life 7/1/24 1/1/27 5 yrs. 5 yrs. Salvage Value $4,800 $4,000 Depreciation Method Straight-line Double-declining-balance Date Sold 7/1/28 12/31/28 Sales Price $16,000 $29,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: None

A: Double-declining balance is an accelerated depreciation method that has a depreciation expense that…

Q: how much Depreciation Expense should Bean record in total for all of it's long-term assets on…

A: Depreciation Cost The purpose of providing the depreciation cost is to know actual net value of the…

Q: Depreciation by Two Methods A Kubota tractor acquired on January 9 at a cost of $153,000 has an…

A: The depreciation expense refers to the reduction in the value of asset due to the use or with the…

Q: Exercise 8-18 (Algo) Partial-year depreciation; disposal of plant asset LO P2 Rayya Company…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: The Company acquireda machine on January 1, Year 1. The machine cost $500,000 and had an estimated…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8…

A: Depreciation is an expense which is charged for the wear and tear of fixed asset. Different methods…

Q: Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8…

A: Depreciation is the reduction in value of fixed assets on a fix rate during a financial year.it can…

Q: Obj. 2 Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to…

A: Under straight line method, depreciation is charged uniformly throughout the useful life of the…

Q: On October 1, 2013 a machine costing Rs. 35,000 was purchased and Rs. 5,000 spent on transporting…

A: There are a lot of different things that make an asset lose value over time. Because of inflation or…

Q: Exercise 6-19A (Algo) Asset replacement decision LO 6-5 Solomon Company is considering the…

A: Relevant cost refers to avoidable expenses that are only incurred while making particular business…

Q: Depreciation by Two Methods A computer system acquired on January 1 at a cost of $153,000 has an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: 1 2 3 4 5 Multiple Choice O A O O Jan 1 +(86+87/88 +86-87/88 =+86-87/88 =+86+87/88 8 Equipment 6…

A: Depreciation Expense is an expense incurred on the fixed assets of the company. Damages incurred due…

Q: None

A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Q: Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The…

A: Depreciation Expense - Depreciation is an Expense incurred on use, wear and tear, passage of time…

Q: Please do not give solution in image format thanku

A: Annual Depreciation Expense = (64000 - 4000) / 4= 60000 / 4= 15000 Accumulated Depreciation is the…

Q: Depreciation calculation methods Barefoot Industrial acquired a new delivery truck at the beginning…

A: Depreciation Expenses are the expenses incurred on the wear and tear of the fixed assets. This is…

Q: First cost Book depreciation life MACRS property class Salvage value $80,000 7 years 7 year $24,000

A: There is a decline happens in the value of an assets due to its use over a period of time. This…

Q: 7. The average cost of a company's property and equipment is $200,000, depreciation expense is…

A: Depreciation expense is the one which is charged on the non-current assets. It is the amount which…

Q: Exercise 6-15 (Algo) Depreciation calculation methods LO 6-3 Millco Incorporated acquired a machine…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation expense is the one which is charged on the non-current assets. It is a non-cash…

Q: depreciation computed by the straight-line

A: Depreciation as per straight Line method = $ 9575

Q: Required information Problem 8-1A Plant asset costs; depreciation methods LO C1, P1 [The following…

A: Depreciation is the expense written off against the cost of fixed assets. It is the charge for wear…

Q: Computing Depreciation Under Alternative Methods Equipment costing $130,000 is expected to have a…

A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…

Q: UWorld ROGER Multiple Choice O $9,167 X Company had been depreciating a machine with an original…

A: Accounting method wherein the cost of a tangible asset is spread over the asset's useful life.…

Q: No explanation needed

A: Step 1: First, we need to compute for the depreciation rate. Since this is the double declining…

Q: The following data relate to the three machines acquired by Khalid Company on January 2011: Machine…

A: Depreciation represents the deduction from the value of an asset over a life of the asset.

Q: A delivery van costing $27,000 is expected to have a $2,000 salvage value at the end of its useful…

A: Double declining balance is the method which uses the depreciation rate equal to the double of…

Q: EXERCISE-3 DEPRECIATION AND DEPLETION 8. A motor costs P60,000 and the salvage value is P6,000 after…

A: Depreciation can be termed as wear and tear of an asset over the useful life of asset.

Q: The following information is available on a depreciable asset: Purchase date January 1, Year 1…

A: Given, Depreciation method = Straight line Useful life(from January 3, year 3 to…

Q: FIXED ASSETS DEPRECIATION (Use Straight Line Method of Depreciation) Date of Purchase Estimated…

A: Depreciation is a dimunition [ reduction] in the value of an asset…

Q: On October 1, Organic Farming purchases wind turbines for $320,000. The wind turbines are expected…

A: Straight-line depreciation is a method of spreading the cost of an asset evenly over its useful…

Q: 5 purchase price was allocated to the building. Depreciation for the first two years was calculated…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: S QS 8-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost…

A: DEPRECIATION Depreciation is a Loss on monetary value of an asset decreases over time due to…

Q: A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage…

A: Depreciation expense:— It is the allocation of depreciable cost of asset over the estimated useful…

Q: QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost…

A: Depreciation means the loss in value of assets because of usage of assets, passage of time or change…

Q: Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8…

A: Depreciation:Depreciation refers to fall in value of assets. There are various methods to calculate…

Q: None

A: a) To get the annual depreciation, first we deduct the estimated residual value from the cost of the…

Q: Waylander Coatings Company purchased waterproofing equipment on January 6 for $451,200. The…

A: Depreciation expense is the regular wear and tear charged on the fixed assets. It is shown in the…

Q: In recent years, Blue Spruce Company has purchased three machines. Because of frequent employee…

A: Business organizations are required to charged the depreciation expense so as to shown the assets at…

Q: Question #1 Equipment had a cost $216,000 and an economic life of 3 years with a salvage value of…

A: Straight-line Annual Depreciation = $216,000 - $6,000 = $210,000 / 3 = $70,000 Double Declining…

Q: A B D E 1 Sullivan Ranch Corporation has purchased a new tractor. The following information is…

A: Given, Cost= $150,000 Residual value= $10,000 Estimated life= 4 years Estimated life in hours= 1200…

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of…

A: Straight-line Method: It is a method of depreciation the assets. In this method depreciation is…

Q: 1, Copeland Drugstore purchased a new computer system for $280,000. It is expected to have a…

A: A double declining balance depreciation method is used to record the depreciation expenses, in this…

Q: Brief Exercise 7-11 (Static) Record depreciation using straight-line method (LO7-4) On January 1,…

A: There are different types of depreciation methods such as straight line method, double declining…

Q: Exercise 6-18A (Algo) Asset replacement decision LO 6-5 Tesla management are trying to decide…

A: Lets understand the basics.Decision-making is one of the important processes for management to…

Q: Three different companies each purchased trucks on January 1, Year 1, for $62,000. Each truck was…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Question

Blossom Computer Company sold two pieces of equipment in 2028. The following information pertains to the two pieces of
equipment:
Machine
#1
#2
Cost
$68,800
$76,000
Purchase Useful Salvage
Date
Life
Value
7/1/24
1/1/27
5 yrs.
5 yrs.
$4,800
$4,000
Depreciation
Method
Straight-line
Date Sold
7/1/28
Double-declining-balance 12/31/281
Sales
Price
$16,000
$29,600

Compute the depreciation on each piece of equipment to the date of disposal.
Machine #1
Year
2024
2025
2026
2027
2028
Machine #2
Year
$
2027 $
2028
Annual
Depreciation
Annual
Depreciation
$
$
Accumulated
Depreciation
Accumulated
Depreciation

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ignment Required information Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] Exercise 8-9A (Algo) Part a F1 At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have a five-year life and a $30,000 salvage value. Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Year 1 Year 2 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Note: Leave no cells blank - be certain to enter "0" wherever required. Depreciation Expense Year 3 Year 4 Year 5 (@ 2 dx Req A2 F2 50° J # 3 F3 $ 4 पं…
#3 Depreciation (Straight Line Method) 3. A unit of welding machine costs P45,000 with an estimated life of 5 years. Its salvage value is P2,500. Find its depreciation rate by SLM.
Please do not give solution in image format thanku
Dog
1 $77,000 $11,550 230,000 miles 34,500 miles 2 111,800 13,416 3 103,500 4 115,000 14,490 13,800 340,000 miles 204,000 miles 370,000 miles $22,360 82,800 23,000 34,000 miles 20,400 miles 44,400 miles a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No. Rate per Mile (in cents) Credit to Accumulated Miles Operated Depreciation 1 $ 0.30 34,500 2 34,000 Total 3 20,400 44,400 b. Journalize the entry to record depreciation for the year. If an amount box does not require an entry, leave it blank. Depreciation Expense-Trucks Accumulated Depreciation-Trucks
Sp
QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $870,000 with an estimated useful life of eight years, and salvage value of $78,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate(%) Beginning of Period Book Value Depreciation Expense End of Period Accumulated Depreciation Book Value
Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.
27 01:05:53 Mc Graw Hill Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the double- declining-balance method. The machine's useful life is estimated to be 5 years with a $2,000 salvage value. The machine's book value at the end of year 2 is: Multiple Choice $15,600 $6,800. $11,200. < Prev 27 of 40 www www Noxt
Please do not give solution in image format thanku
MODULE 5 8-7 DISPOSAL OF ASSET Please read the problem below and provide the correct answer along with an explanation of the answer. Thank you! Dump It is selling a machine that no longer is large enough for the production requirements. Dump It has had the machien for 3 years and has depreicated it using the straightline method. Original cost had been $98,000 and salvage was estimated at $6000. The machine has a life of 8 years. a) Journalize the sale of the imagine $70,000 b) Journalize teh sale of the machine for $50,000
51