XYZ Company purchased a machine at a cost of $ 125,000 on 30/5/2020. The machine is expected to have a $20,000 salvage value at the end of its 5-year useful life. Instructions: Compute the depreciation rate. Using the straight-line method, prepare a depreciation schedule, showing the annual depreciation expense for the machine over its 5-years life. Record the depreciation expense on 31/12/2020 in the general journal. What are the factors influencing the choice of the depreciation method of plant assets

NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, assume the straight line depreciation method was used and that: a.​It was sold for $ 10000 cash b.​It was sold for $ 8000 cash c.​It was traded in on a similar mixer ( new) having a list price of $ 16500, a trade in allowance of $ 8000 was given and the balance was paid in cash.

Gundrum Company purchased equipment on January 1, 2015 for $811,400. The equipment was expected to have a useful life of 10 years and a salvage value of $28,400. Gundrum uses the straight-line method of depreciation. At the beginning of 2020, Gundrum determined the total estimated life of the equipment was 13 years and the residual value would be $10,400 at the end of that time. Required:   Prepare any entry needed in 2020 to account for this change.

Salamon Company purchased equipment on January 1, 2020 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Instructions Answer the following independent questions. SHOW ALL CALCULATIONS. Compute the amount of depreciation expense for the year ended December 31, 2020 and 2021, using the straight-line method of depreciation.   Prepare the journal entry to record the annual depreciation expense at 12/31/20.   If 16,000 units of product are produced in 2020 and 24,000 units are produced in 2021, what is the depreciation expense per year for 2020 and 2021 and what is the accumulated depreciation at December 31, 2021? The company uses the units-of-activity depreciation method.   If the company uses the double-declining-balance method of depreciation, prepare the following chart for years 1, 2 and 3.…

A microcomputer was purchased on January 1, 2017 at a cost of    $11,000. It is expected to have a useful life of 5 years and a    residual value of $1000. The microcomputer is depreciated  using the straight line method.  Assume the microcomputer is disposed of, after year end depreciation has been recorded on January 1, 2020.     REQUIRED: Give the general journal entry to record the sale of the microcomputer under the following unrelated circumstances:       1. The microcomputer is sold for $1,000.       2. The microcomputer is sold for $7,300.       3. The microcomputer is abandoned   Hint: Calculate Accumulated Depreciation balance at January 1, 2020

Cheyenne Corp. purchased a new machine on October 1, 2022, at a cost of $131,000. The company estimated that the machine will have a salvage value of $18,500. The machine is expected to be used for 10,000 working hours during its 5-year life.   Straight-line method for depreciation expense for 2022 is 5625   My question is "Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,900 hours."   The answer should be a depreciation expense this is for a study guide on wiley plus

Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year. Instructions a.   Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years’-digits method. b.   Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.

Crane Company purchased a machine on July 1, 2020, for $900000. The machine has an estimated useful life of five years and a salvage value of $190000. The machine is being depreciated from the date of acquisition by the 150% declining-balance method. For the year ended December 31, 2020, Crane should record depreciation expense on this machine of O $106500. O $180000. O $270000. O $135000.

Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The machine has an estimated life of five years and an estimated salvage value of $6,600. Required: a. Calculate the depreciation expense for each year of the asset's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required C Calculate the depreciation expense for each year of the asset's life using Straight-line depreciation. Depreciation Expense Year 1 2 3 4 5

Novak Company purchased a piece of equipment at the beginning of 2022. The equipment cost $402,120. It has an estimated service life of 8 years and an expected salvage value of $74,160. The sum-of-the-years-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $36,440 will be depreciated for a particular calendar year. Determine for what particular year the depreciation amount for this asset will be $36,440. Year of depreciation