Podey Company has a machine that originally cost $20,000, has accumulated depreciation of $14,000 at the beginning of the current year, and is being depreciated at $2,000 per year with the straight-line method. If the company sells the machine for $2,400 on September 30, it will recognize a loss on disposal of $2,100. gain on disposal of $2,400. loss on disposal of $3,600. gain on disposal of $3,600.

Q: On January 1, 2021, Marigold company acquired a computer amounting to P47,000, transportation cost…

A: Cost of computer = Purchase price of computer + transportation cost + installation cost of desk…

Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…

A: 1. DEPRECIABLE VALUE :  = COST - SALVAGE VALUE  = $14,000 - $2,000 = $12,000   2. DEPRECIATION…

Q: A piece of equipment was purchased by Jonesy’s Ltd. on April 10, 2016 at a cost of $35,000. It is…

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

Q: At the beginning of the year Joeker Company brought machinery under a contract that required a down…

A: Interest is paid on the loan amount sanctioned. Interest amount is said to be the cost of the funds…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is…

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

Q: NUBD Co. had a machine with an original cost of P95,000 and an estimated salvage value of 5,000.  It…

A: Annual Depreciation on old machine = (Cost of the assets - Salvage value) / life of the assets =…

Q: Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400.…

A: Straight-line depreciation: Straight-line depreciation is one of the common methods of depreciation…

Q: SSG bought a machine for $40,000 in January 19W8. The machine had an expected useful life of six…

A: Depreciation is an amortization expense of the asset's cost over the useful life of an asset which…

Q: Lance Co. had a machine with an original cost of P95,000 and an estimated salvage value of 5,000. It…

A: Annual Depreciation on old machine = (Cost of the assets - Salvage value) / life of the assets =…

Q: Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is…

A: Introduction: Journals entries

Q: On January 1, 2018, Check Co. bought a machine for $15,000. Residual value was estimated to be…

A: The answer is as fallows

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1,000,000,…

A: Depreciation - It refers to the fall in the value of fixed assets due to wear and tear. It is a…

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000,…

A: In case of purchase of fixed asset under instalment method, then amount paid by way of number of…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…

Q: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value…

A: Depreciation expense under the straight-line method is computed by: = (Historical Cost - Salvage…

Q: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value…

A: Cost of warehouse $3,00,000 Less: Estimated Salvage Value $15,000 Depreciable Value ($300000 -…

Q: Montello Inc. purchases a delivery truck for $13,000. The truck has a salvage value of $2,000 and is…

A:

Q: On July 1, 2004, Gonzalez Corporation purchased factory equipment for P450,000. Salvage value was…

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

Q: Rigley Industries sells a plant asset which originally cost $240,000 for $90,000 on December 31,…

A: SOLUTION-   GAIN OR LOSS ON DISPOSAL = ORIGINAL COST -ACCUMULATED DEPRECIATION- SALES VALUE.

Q: Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $105,000.…

A: 1) Machine is sold for $45,500 Given, Cost of Machine = $105,000 Salvage Value =  Useful Life = 7…

Q: Alexander Company purchased a piece of equipment for $14,000 and depreciated it for three years over…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: Liquior Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…

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

Q: During the first two years, Supplies, Inc. drove the company truck 15,000 and 22,000 miles,…

A: Depreciation per mile = (Cost of miles - estimated residual value) / estimated life in miles =…

Q: Equipment costing $76,000 was purchased by Spence, Inc., at the beginning of the current year. The…

A: Declining balance method: Declining balance method under which larger amount of depreciation is…

Q: On January 1, 2018, Kefauver Company purchased a piece of equipment for $375,000. The equipment had…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Monster Inc. purchased a machine for $100,000 and depreciated it on a straight-line basis over a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which method is favorable for tax advantage and explain through calculation?

A: Given that: Cost of Truck = $75,000 Residual value = $6000 Life = 5 years

Q: turdivant Company owns an executive plane that originally cost $1,280,000. It has recorded…

A: In straight line method of depreciation there is uniform annual depreciation and book value…

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Bradley Company purchased a machine for $34,000 on January 1, 2017. It depreciates the machine using…

A: Straight-line method refers to the method by which owners of company extent the value of asset for…

Q: Wetherby purchased a machine on 1 July 20X7 for $500,000. It is being depreciated on a straight line…

A: We have the following information: Wetherby purchased a machine on 1 July 20X7 for $500,000  It is…

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

A: Depreciation is the loss in the value of the asset caused due to its usage, wear, and tear. There…

Q: NUBD Co. had a machine with an original cost of P95,000 and an estimated salvage value of 5,000. It…

A: Sunk cost refers to expenses which have already been incurred and cannot be recovered at any cost…

Q: MKG, Inc. paid $400,000 for a piece of equipment that is expected to have a 12 year useful life. In…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Bolan Company purchased a tooling machine on January 3, 2014 for $500,000. The machine was being…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Millco Inc., acquired a machine that cost $456,000 early in 2019. The machine is expected to last…

A: a) Depreciation straight line method =(Cost -salvage)/life      = (456000-66000)/8      = 48750 per…

Q: Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck…

A: Depreciation = 790,000 -60000/10  = 73000 SLM rate = 1/10 = 10% Income StatementDepreciation…

Q: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value…

A: Depreciation can be defined as fall in the asset’s historical value each year. Depreciable amount is…

Q: Burrell Company purchased a machine for $21,000 on January 2, 2019. The machine has an estimated…

A: Straight line method: Straight line basis is a method of calculating depreciation and amortization,…

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Depreciation represents the reduction in the value of long-term assets for the useful life of the…

Q: . Calculate annual depreciation expense for the first four years. $fill in the blank…

A:

Q: On January 1, Phil’s Burgers purchased a burger making machine at a cost of $400,000. The delivery,…

A: Solution..   Total cost of machine  = Purchase price + instalation and set up costs  = $400,000 +…

Q: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…

A: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…

Q: DEF manufacturing company, a calendar-year company, purchased a machine for P650,000 on January…

A: Cost of machine = Purchase price + Freight in + Installation cost + Testing cost = P650,000 + 5,000…

Q: Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per year…

A: Depreciation: It refers to a fall in the value of the fixed asset because of obsolescence,…

Q: New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery…

A: Depreciation: When a new fixed asset is purchased, it does not have the price that was at the time…

Q: William, Inc., purchased a truck to use for deliveries and is attempting to determine how much…

A: Depreciable cost=Value of truck-Salvage value=75,000-6,000=69,000