Silverman Company purchased machinery for $162,000 on January 1, 2020. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and working hours of 42,000. During 2020, the company uses the machinery for 14,300 hours, and the machinery produces 20,000 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining-balance methods.

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Parnell Company acquired construction equipment on January 1, 2020, at a cost of $79,000. The equipment was expected to have a useful life of five years and a residual value of $15,000 and is being depreciated on a straight-line basis. On January 1, 2021, the equipment was appraised and determined to have a fair value of $74,400, a salvage value of $15,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.   Assume that Parnell Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS. Prepare the entry(ies) that Parnell would make…

Lockard Company purchased machinery on January 1, 2020, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. (a) Compute 2020 depreciation expense using the straight-line method. (b) Compute 2020 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2020.

Parnell Company acquired construction equipment on January 1, 2020, at a cost of $75,100. The equipment was expected to have a useful life of five years and a residual value of $14,000 and is being depreciated on a straight-line basis. On January 1, 2021, the equipment was appraised and determined to have a fair value of $71,500, a salvage value of $14,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16. Assume that Parnell Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: a. Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS. b. Prepare the entry(ies) that Parnell would make…

On July 31, 2021, John Deere Manufacturing Company purchased a machine that cost $1,200,000, with an estimated residual value of $58,000, and an estimated useful life of ten years. The machine is being depreciated on a straight-line basis. At the end of the second year, what is the total amount of depreciation expense reported on the Income Statement and the total amount of accumulated depreciation reported on the Balance Sheet? (Round final answers to whole dollars) Depreciation Expense  Accumulated Depreciation

Parnell Company acquired construction equipment on January 1, 2020, at a cost of $78,400. The equipment was expected to have a useful life of six years and a residual value of $10,000 and is being depreciated on a straight-line basis. On January 1, 2021, the equipment was appraised and determined to have a fair value of $74,500, a salvage value of $10,000, and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.   Assume that Parnell Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.   Required: Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS. Prepare the entry(ies) that Parnell would make…

Property,plant and equipment   Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s estimated useful life is 8 years or 60,000 hours, and its residual value is $9,000. During 2020 and 2021, the machinery was used 7,000 and 8,00 hours, respectively.   This information will be used for Parts 1, 2, and 3 of this problem.  It will be repeated in each part. Property,plant and equipment   Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s estimated useful life is 8 years or 60,000 hours, and its residual value is $9,000. During 2020 and 2021, the machinery was used 7,000 and 8,00 hours, respectively.   This information will be used for Parts 1, 2, and 3 of this problem.  It will be repeated in each part. What is the book value on Dec. 31, 2020, after the adjusting entry (straight-line)?   Show your calculations  Blank 1. Fill in the blank, read surrounding text.   Book Value, Dec 31, 2020…

Hansaben

Bucker Company purchased a fabrication machine on January 1, 2020 for $55,000. The machine is expected to                 have an estimated useful of 5 years or 100,000 units produced. The machine is expected to have a residual value                 of $5,000 after the five years of use.                                   a. Calculate the amount of depreciation each year using the straight-line method.                 b. Calculate the depreciation each year using the units-of-production method given the following usage:                 2020: 22,000 units; 2021: 23,000 units; 2022: 21,000 units; 2023: 19,000 units; 2024: 15,000 units                 c. Calculate the depreciation each year using the double-declining balance method.                 d. Which of the three methods results in the lowest net income for 2021?                 e. Which of the three methods resuls in the lowest net income for 2024?