The following are some transactions of Sandhill Company for 2021. Sandhill Company uses straight-line depreciation and has a December 31 year end.   Apr. 1   Retired a piece of equipment that was purchased on January 1, 2012, for $46,000. The equipment had an expected useful life of 10 years with no residual value. July 30   Sold equipment for $1,300 cash. The equipment was purchased on January 3, 2019, for $13,680 and was depreciated over an expected useful life of three years with no residual value. Nov. 1   Traded in an old vehicle for a new vehicle, receiving a $10,000 trade-in allowance and paying $36,000 cash. The old vehicle had been purchased on November 1, 2015, at a cost of $30,300. The estimated useful life was eight years and the estimated residual value was $6,300. The fair value of the old vehicle was $8,400 on November 1, 2021.

For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,832,000. Its useful life was estimated to be six years with a $228,000 residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year ($ in thousands) Straight-Line Declining Balance Difference 2021 $ 434 $ 944 $ 510 2022 434 629 195 2023 434 420 (14)   $ 1,302 $ 1,993 $ 691 Required: 2. Prepare any 2024 journal entry related to the change. Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2019 and 2020. Early in 2021, the company changed its depreciation method to the sum-of-the-years’-digits (SYD) method. Required:2. Prepare any 2021 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the adjusting entry for depreciation in 2021.

On January 1, 2017, Buffalo Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,200 salvage value, $746,800 cost Equipment, 12-year estimated useful life, $10,800 salvage value, $103,500 cost The building has been depreciated under the double-declining-balance method through 2020. In 2021, the company decided to switch to the straight-line method of depreciation. Buffalo also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line method.(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for…

Kavya Company purchased a machine on October 1, 2017, for $80,000. At the time of acquisition, the machine was estimated to have a useful life of five years and an estimated salvage of $5,000. The company has recorded monthly depreciation using the straight-line method. On April 1, 2019, the machine was sold for $47,500. What should be the loss recognized from the sale of the machine? O $7,500 O $5,000 O $10,000 O $2,500

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:    ($ in thousands) Year Straight-Line Declining Balance Difference 2018   $ 432     $ 938     $ 506     2019     432       626       194     2020     432       417       (15 )       $ 1,296     $ 1,981     $ 685          Required:2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On July 2, 2013, Sable Company purchased a building for $300,000 that had an estimated residual value of $46,000 and an expected useful life of ten years. Sable Company has a December 31st, year end. If Sable Company uses the Declining Balance Method at the straight-line rate, the depreciation expense for year two is: $27000, $28500, $25400, $30000, or none of the above

Kaila Corporation purchased a truck for 225,000 on January 1, 2017. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of 45,000. On December 31, 2019, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2019) and the residual value to 7,500. What was the depreciation expense for 2019?

Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $42,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $5,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $12,400. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a.  $12,000 b.  $9,000 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $12,000. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000. What journal entries are required to record the sale?

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.