None On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that theequipment would have a useful life of 12 years and a residual value of $16,800 at the end of that time, and depreciation has beencalculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFRS(a)Your answer is partially correctCalculate the depreciation charge on this equipment for 2016 and for 2023, and the total charge for the period from 2017 to2022, inclusive, under each of the following six assumptions for partial periods: Round answers to O decimal places eg 5.275.1Depreciation is calculated for the exact period of time during which the asset is owned. Use 65 days for your base2Depreciation is calculated for the full year on the January 1 balance in the asset account.3.Depreciation is calculated for the full year on the December 31 balance in the asset account.4Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year5Depreciation is calculated on additions from the beginning of the month following their acquisition andthe beginning of the month following the disposal.disposals toDepreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged onassets in use for less than half a year. Use Ces days for your base.20162017-202215005.48eTextbook and Media20232712.33146007300TotalSudamals Anduarдо

Name: None On March 10, 2023, Pearl Limited sold equipment that it bought fo
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: None On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that theequipment would have a useful life of 12 years and a residual value of $16,800 at the end of that time, and depre

Business

Accounting

On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 at the end of that time, and depreciation has been calculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFRS (a) Your answer is partic

On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 at the end of that time, and depreciation has been calculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFRS (a) Your answer is partic

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

See similar textbooks

Similar questions

On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building 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.
Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000 Clear my choice
Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000
On march 10, 2023, Sweet Acacia limited sold equipment that it bought for 286800 on August 20, 2026. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of 24000 at the end of that time and depreciation has been calculated on that basis. The company uses the straight line method of depreciation and prepares its financial statement under IFRS. Calculate the depreciation charges on this equipment for 2016 and 2023, and the total charge for the period from 2017 to 2022, inclusive under each of the following six assumptions for partial periods. Depreciation is calculated for the exact period of time during which the asset is owned. Depreciation is calculated for the full year on January 1 balance in the asset account. Depreciation is calculated for the full year on December 31 balance in the asset account Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year. Depreciation is…
On March 10, 2022, Bonita Company sells equipment that it purchased for $209,280 on August 20, 2015. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $18,312 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. Compute the depreciation charge on this equipment for 2015, for 2022, and the total charge for the period from 2016 to 2021, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, eg. 15.64 and final answers to O decimal places, e.g. 45,892.) 2015 2016-2021 Inclusive 2022 1. Depreciation is computed for the exact period of time during which the 24 2$ 2$ asset is owned. (Use 365 days for base and record depreciation through March 9, 2022.) 2. Depreciation is computed for the full year on the January 1 balance in the 24 24 asset account. 3. Depreciation is computed for…
(Depreciation for Fractional Periods) On March 10, 2022, Lost World Company sells equipment that it purchased for $192,000 on August 20, 2015. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. Instructions a. Compute the depreciation charge on this equipment for 2015, for 2022, and the total charge for the period from 2016 to 2021, inclusive, under each of the six following assumptions with respect to partial periods. 1.Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2022.) 2.Depreciation is computed for the full year on the January 1 balance in the asset account. 3.Depreciation is computed for the full year on the December 31 balance in the asset account. 4.Depreciation for one-half year…
Assume that Hider Darwesh Company purchased a Machine for OMR 25000 on 31st December 2013.The company charging OMR 3125 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 12500 and the company decided to sell this equipment for OMR 13000 on 31st Mar2018. Findout the profit or loss on sale of Machine and pass necessary journal entry in the books of Hider Darwesh Company. a. Dr Cash A/C 13000 Dr accumulated depreciation 13000 and Cr Profit on sale of machinery OMR 1000 Cr Machinery A/C 25000 b. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13281and Cr Profit on sale of machine 1281 Cr Machinery A/C 25000 c. None of the given options d. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13300and Cr Profit on sale of machine 1300 Cr Machinery A/C 25000
Concord Company is in the process of preparing its financial statements for 2025. Assume that no entries for depreciation have been recorded in 2025. The following information related to depreciation of fixed assets is provided to you. 1. 2. 3. (a) 1. Concord purchased equipment on January 2, 2022, for $86,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2025, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,000 salvage value. 2. During 2025, Concord changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $320,000. It had a useful life of 10 years and a salvage value of $32,000. The following computations present depreciation on both bases for 2023 and 2024. 3. Straight-line $28,800 $28,800 Declining-balance 51,200…
(Depreciation for Fractional Periods) On March 10, 2022, Lost World Company sells equipment that it purchased for $192,000 on August 20, 2015. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. 1.Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2022.) 2.Depreciation is computed for the full year on the January 1 balance in the asset account. 3.Depreciation is computed for the full year on the December 31 balance in the asset account. 4.Depreciation for one-half year is charged on plant assets acquired or disposed of during the year. 5.Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal.…
Alteran Corporation purchased office equipment for $1.5 million in 2015. The equipment is being depreciatedover a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $300,000. Atthe beginning of 2018, Alteran decided to change to the straight-line depreciation method for this equipment.Required:Prepare the journal entry to record depreciation for 2018
Clean Corporation purchased a depreciable asset for $1,560,000 on January 1, 2015. The estimated salvage value is $120,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2018, Hollander changed its estimates to a total remaining useful life of 8 years with a salvage value of $200,000. What is 2018 depreciation expense? A) $160,000 OB) $200,000 C) $240,000 D) $110,000