On January 1, 2016, Indians Corporation bought a factory equipment forP924,000 salvage value was estimated at P24,000. The asset will bedepreciated over 10 years using the double declining balance method.How much is the total accumulated depreciation to be reported in thebalance sheet on December 31, 2021?

Under Double declining balance method, depreciation is charged at an accelerated rate in the initial…

Answered: On January 1, 2016, Indians Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. On January 1, 2019, Caylor Corp. purchases a machine for $185,000, estimated useful life of 40,000 machine hours, salvage value of $7,500. Actual hours of operation are: 2019: 13,000 hours; 2020: 15,000 hours; 2021: 14,000 hours. They use UOP depreciation. Compute depreciation for 2019 – 2021. Round the rate to 2 decimals. 2. On March 1, 2017, Effy Company purchases for $600,000 a machine that Efay estimates will have a useful life of 50,000 machine hours and a salvage value of for $15,000. In Year 1, Effy uses the machine for 11,100 hours; in Year 2, 8,600 hours; in Year 3, 9,100 hours; in Year 4, 12,000 hours; and in Year 5, 13,600. They use UOP depreciation.
Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $125,000. The residual value of the equipment was estimated to be $8,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $34,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.
On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2021 balance sheet assuming that Hess Company uses the double-declining-balance method of depreciation?
On April1, 2021,DG Corporation purchased an equipment with cost of 150000. The company estimate that it has a useful life of five years with a residual value of 25000 at the end of it's economic life. On December 31, 2021, how much will be the depreciation to be by the company assuming the firm employs the straight-line method?
Take me to the text On July 1, 2023, Earth Corporation purchased factory equipment for $159,000. The equipment has a residual value of $7,000 and is to be depreciated over 8 years using the double- declining-balance method. Earth Corporation's year end is on September 30. Calculate the depreciation expense to be recorded for the fiscal years ending September 30, 2023, and September 30, 2024. Earth Corporation depreciates its assets based on the number of months it owned the asset during the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. 2023 Depreciation: $ 2024 Depreciation: $
Basalt Inc bought a new vehicle on September 1, 2021 for $50,000. The vehicle is estimated to have a residual value of $5,000 at the end of its life and will last 7 years. Using straight-line depreciation, what is the depreciation expense at the year end of December 31, 2021 and 2022, respectively?
A plant asset was purchased for P19,000 on January 1, 2011 with a residual value and useful life of five years. In 2014, the total useful life is re-estimated to be seven years and the estimated salvage value is assumed to be zero. Sum of years' digits depreciation is used. What is the depreciation expense in 2014? O a) P2,340 O b) P2,160 O c) P1,350 O d) P1,210
On January 1, 2018, Jane Company purchased an equipment with an estimated useful life of 8 years. The equipment was expected to have a residual value of P20,000 at the end of its useful life. The sum-of-the-years digits method was used in computing depreciation. For the year ended December 31, 2021, the depreciation applicable to this equipment was P42,000.What was the acquisition cost of the equipment? a. 378,000 b. 398,000 c. 302,400 d. 322,400
Wildhorse Company purchaseda hot tub for $ 11,790 on January 1, 2016. Straight-line depreciation is used, based on a 6-year life and a $ 1,890 salvage value. In 2018, the estimates are revised. Wildhorse now feels the hot tub will be used until December 31, 2020, when it can be sold for $ 885. Compute the 2018 depreciation. Depreciation expense, 2018 %24
On June 1. 2018. KJ Corporation acquired equipment for $360,000. The estimated useful life of t equipment is 5 years or 40,000 hours. The estimated residual value is $30,000. What is the book value of the asset on December 31, 2020. if KJ Corporation uses the straight-line method of depreciation? O $189.500 $162.000 $144.000 $174.000 $184.000
On July 1, 2020, Concord Corporation purchased factory equipment for $28300O. Salvage value was estimated to be $7900. The equipment will be depreciated over five years using the double-declining balance method. Counting the year of acquisition as one-half year, Concord should record depreciation expense for 2021 on this equipment of O $58180. O $67920. O $90560. O $113200.
Gotham Company purchased a new machine on October 1, 2025, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 working hours during its 10-year life. (a) Compute depreciation using declining-balance using double the straight-line rate for 2025 and 2026. (Round answers to 2 decimal places, eg 2,152.75.) Depreciation using the declining-balance method $ 2025 2026 $

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