On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of equipment at a total cost of P10,000,000. The equipment is estimated to have a useful life of 5 years with a residual value equal to 10% of its cost. How much is the depreciation expense for 2021 using the straight line depreciation method?

On September 30, 2021, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service.Depreciation (to the nearest dollar) for 2022, using sum-of-the-years'-digits method, would be:   Multiple Choice   $31,909.   $29,455.   $35,456.   $54,000.

Gwynedd Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 1, 2020, the company purchased a machine costing $170,000, and it has an estimated useful life of 15 years and an estimated residual value of $26,000. Depreciation for partial years is rounded to the nearest full month. In 2024, management decided to revise its estimated life from 18 years to 25 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2024. Instructions: a) Prepare journal entries in chronological order for the given events, beginning with the purchase of machinery on January 1, 2020. Record depreciation expense separately for each year 2020 through 2024 (5 separate entries for each year's depreciation) (Hint: record the purchase and annual depreciation for each…

Beats Corporation constructed a machine at a total cost of $206 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum - of-the- yearsdigits method. By that method, accumulated depreciation at the end of 2023 is $972 milion. The residual value is expected to be $8.0 million. At the beginning of 2024, Beats decided to change to the straight-line method. Ignoring income taxes, what will be Beats's depreciation expense for 2024? Do not round intermedlate calculations. $14.4 million $27.2 million $5.4 million $16.2 million

Peter Boy Co. purchased machinery for P15,000,000 on Jan. 1, 2021. The machine has a useful life of 15 years with a residual value of P1,500,000. The entity also estimates that the machine will be able to produce a total of 1,500,000 units of cars. For 2021, the machine produced a total of 75,000 units of cars. Using the Output Method, how much depreciation should be recognized?

Lux Inc. recently purchased some production equipment that they would take possession as of February 1, 2021. The total purchase price for the equipment is $175,000 and they expect the residual value to be $25,000. The equipment is expected to have an estimated useful life of 5 years. Lux Inc. has a fiscal year end of December 31st. Required - a. What is the production equipment's depreciation expense for the year ending December 3, 2021, if they apply: i. straight-line method? ii) declining balance method for 2021 and 2022 assuming a 20% rate? b. On January 1, 2023, the company decided to make improvements to the production equipment and believe the total its estimated life will now be a total of 8 years and the residual value be $15,000. What is the depreciation expense for the year ending December 31, 2023, assuming the company uses the straight-line method? Assume that the 2021 and 2022 depreciation expenses were recorded correctly. c. On January 1, 2025 Lux Inc. sold the…

On April 1, 2021, Metro Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a residual value of $6,000.   Required: Compute depreciation for 2021 (for 9 months, 4/1/21 ~ 12/31/21) assuming the sum-of-the-years'-digits method is used.  No credit if no computation is shown.

Jersey Corporation, which has a calendar year accounting period, purchased a machine for $400,000 on April 1, 2016. At that time Jersey expected to use the machine for nine years and then sell it for $4,000. The machine was sold for $22,000 on Sept. 30, 2021. Assuming straight-line depreciation, calculate the gain(/(loss) at the sale of the machine.

ABC Company purchased new machinery for $50,000 on January 1, 2022. The machinery is expected to have a useful life of 5 years and a residual value of $5,000. ABC Company uses the straight-line depreciation method for all its assets. Calculate the depreciation expense for the machinery for the year 2022.

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