
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Calculation of Book Value
On June 1, 20--, a
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- STRAIGHT-LINE DEPRECIATION A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straight-line method.arrow_forwardHelp Dose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash inflows using a 12% discount rate Choice sometimes greater than under a 10% discount rate and sometimes less; it depends on R. O greater than under a 10% discount rate. O less than under a 10% discount rate. O equal to that under a 10% discount rate. 节 2009arrow_forwardHow to determine book value with 4800$ and no salvagearrow_forward
- Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest centarrow_forwardDengararrow_forwardEmir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Emir depreciates its assets under the straight-line method. What are the amounts of depreciation expense during Year 3 and the accumulated depreciation at December 31, Year 3, respectively? Multiple Choice $68,000 and $17,000 $17,000 and $68,000 $17,000 and $51.000 $17,000 and $17,000arrow_forward
- Subject :- Accountarrow_forwardCalculation of Book Value On June 1, 20--, a depreciable asset was acquired for $6,840. The asset has an estimated useful life of six years (72 months) and no salvage value. Using the straight-line depreciation method, calculate the book value as of December 31, 20--.$fill in the blank 1arrow_forwardEquipment was acquired at the beginning of the year at a cost of $77,580. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,620. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $58,600, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Debit creditarrow_forward
- If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for the monthly expense under straight-line depreciation is a. Depreciation Expense 100 Accumulated Depreciation 1,200 Accumulated Depreciation 1,200 100 b. Depreciation Expense 1,200 c. Accumulated Depreciation Depreciation Expense d. Accumulated Depreciation Depreciation Expense 1,200 100 100 O D O Aarrow_forwardAn asset was purchased for $143,000 on January 1, Year 1 and originally estimated to have a useful life of 9 years with a residual value of $11,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,600. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$27,044.44 b.$28,544.44 c.$28,044.44 d.$29,044.44arrow_forwardSale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $49,470. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $106,489. Round your answer to the nearest cent and enter as a positive amount. $Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipmentarrow_forward
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