Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 10, Problem 9E
Straight-line
Tory Enterprises pays $238,400 for equipment that will last five years and have a $43,600 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,500 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation.
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Required information
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Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By
using the equipment in its operations for five years, the company expects to earn $90,300 annually, after
deducting all expenses except depreciation.
Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total
five-year period, assuming straight-line depreciation is used.
Year 1
Year 2
Year 3
Year 4
Year 5
Totals
8
O
Income Before
Depreciation
$
reciation
Expense
0 $
6
delete
home
10
Required information
[The following information applies to the questions displayed below.]
Tory Enterprises pays $250,400 for equipment that will last five years and have a
$44,800 salvage value. By using the equipment in its operations for five years, the
company expects to earn $89,700 annually, after deducting all expenses except
depreciation.
Prepare a table showing income before depreciation, depreciation expense, and net (pretax)
income for each year and for the total five-year period, assuming straight-line depreciation is used.
Year 1
Year 2
Year 3
Year 4
Year 5
Totals
Answer is complete but not entirely correct.
Income Before Depreciation
Depreciation
Net (Pretax)
Income
Expense
$
89,700
89,700
89,700
89,700
89.700
448,500
$
$
100,160 $
100,096 X
36,058 X
9,286 x
0
245,600 $
(10,460) X
29,604
53,642
80,414
89,700
242,900
Required information
[The following information applies to the questions displayed below.]
Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By
using the equipment in its operations for five years, the company expects to earn $90,300 annually, after
deducting all expenses except depreciation.
Calculate annual depreciation expense using double-declining-balance method.
Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total
five-year period, assuming double-declining-balance depreciation is used.
Complete this question by entering your answers in the tabs below.
Depreciation
Schedule
Calculate annual depreciation expenses using double-declining-balance method.
Note: Round Annual Depreciation to the nearest whole dollar.
Year
Income
Computation
Year 1
Depreciation for the Period
Beginning of
Period Book
Value
O
8
Depreciation Annual
Rate
9
Depreciation
*
prt…
Chapter 10 Solutions
Principles of Financial Accounting.
Ch. 10 - A company paid 326,000 for property that included...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Why is the Modified Accelerated Cost Recovery...Ch. 10 - Prob. 7DQCh. 10 - Identify events that might lead to disposal of a...Ch. 10 - Prob. 9DQCh. 10 - Is the declining-balance method an acceptable way...Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - APPLE On its recent balance sheet in Appendix A,...Ch. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - On January 1, the Matthews Band pays 65,800 for...Ch. 10 - Prob. 8QSCh. 10 - Revenue and capital expenditures 1. Classify the...Ch. 10 - Disposal of assets Garcia Co. owns equipment that...Ch. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Caleb Co. owns a machine that had cost 42,400 with...Ch. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - NewTech purchases computer equipment for 154,000...Ch. 10 - Double-declining-balance depreciation In early...Ch. 10 - Straight-line depreciation and income effects P1...Ch. 10 - Double-declining-balance depreciation P1 Tory...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Revising depreciation C2 Apex Fitness Club uses...Ch. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Montana Mining Co. pays 3,721,000 for an ore...Ch. 10 - Milano Gallery purchases the copyright on a...Ch. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Lok Co. reports net sales of 5,856,480 for Year 2...Ch. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - Prob. 1APCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Yoshi Company completed the following transactions...Ch. 10 - Onslow Co. purchased a used machine for 178,000...Ch. 10 - On July 23 of the current year, Dakota Mining Co....Ch. 10 - On January 1, Falk Company signed a contract to...Ch. 10 - Nagy Company makes a lump-sum purchase of several...Ch. 10 - Prob. 2BPCh. 10 - Prob. 3BPCh. 10 - Prob. 4BPCh. 10 - Prob. 5BPCh. 10 - On January 1, Walker purchased a used machine for...Ch. 10 - Prob. 7BPCh. 10 - Prob. 8BPCh. 10 - Prob. 10SPCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 1BTNCh. 10 - Prob. 5BTN
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