Chapter 11 - Property Disposition Examples

TB MC Qu. 08-173 Martin Company purchases a machine... Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. Depreciation expense in year 4 is:

TB MC Qu. 08-176 Martin Company purchases a machine a... Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. The machine's book value at the end of year 3 is:

Patterson Planning Corp., You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged. In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.40 per hour. Year Schedule A Schedule B Schedule C 1   $10,000     $10,125     $9,240   2   6,000     13,500     6,600   3   3,600     13,500     7,480   4   2,160     13,500     6,600   5   740     3,375     4,400   6               7,040   7               4,840   8                   Total   $22,500     $54,000     $46,200   For each of the depreciation schedules shown on the Patterson Planning Corp., fill in the following information. If an amount box does not require an entry, leave it blank.     A   Useful life   5     4     fill in the blank    Residual value   $fill in the blank      0…

19 On January 1, Yisar 1, a company places a machine in service at a cost of $175,000 with an estimated useful life of 7 years. The accountant incortedly expenses this machine in Year 1 but discovers the terror in Year 3 The company uses straight-line depreciation on this assel, and the books are closed for Year 3 Which entry should be recorded on January 1, Year 4, to correct for this material error? O Debit Equipment for $175,000; Debit Depreciation Expense for $25,000; Credit Retained Earnings for $175,000; Credit Accumulated Depreciation for $25,000 O Debit Equipment for $175,000; Credit Retained Earnings for $100,000; Credit Accumulated Depreciation for $75,000 O Debit Equipment for $175,000; Credit Retained Earnings for $150,000; Credit Accumulated Depreciation for $25,000 O Debit Equipment for $175,000; Debit Depreciation Expense for $25,000; Credit Retained Earnings for $125,000; Credit Accumulated Depreciation for $75,000

TB MC Qu. 10-170 Mohr Company purchases a machine at the... Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is: Multiple Cholce $4,800. $8.000. $9,600. $5,760. $14,400.

Can I please get help with this practice question?7.11 Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $25,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,450 salvage value. Delivery truck costs are recorded in the Trucks account. December 31 Recorded annual straight-line depreciation on the truck. Year 2 December 31 The truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck. Year 3 December 31 Recorded annual straight-line depreciation on the truck. December 31 Sold the truck for $5,400 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events.   Required 1A Required 1B…

10. DEPLORABLE BAD Co. acquired a machine on October 5, 20x1 for a total cost of $160,000. The machine was estimated to have a useful life of 4 years and a salvage value of $10,000. DEPLORABLE BAD Co. uses the sum-of-the-years' digits method and prorates full-year depreciation to the nearest month. DEPLORABLE BAD Co. sold the machine on December 27, 20x2 for $40,000. How much is the gain (loss) on the sale? a. (48,750) b. 48,750 c. (32,250) d. 32,250

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-4 (Algo) Straight-line depreclation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: / Choose Denominator: Depreciation expense Year 2 Depreciation Year end book value (Year 2)

16. $ During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in year 2, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 5 years or 500,000 miles, with an estimated residual value of $40,000, what amount of depreciation expense should the company record in the second year using the activity-based method?

5 Prepare a depreciation schedule for a piece of machinery purchased Jan 10 for $8800. Transportation costs amounted to $200. The estimated useful life is 10 years, and the machine salvage value is $900. The depreciation schedule spans the estimated life of the machine and includes the depreciation rate for each year, the dollar amount of that year's depreciation, the book value, and each years accumulated depreciation.

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-5 Units-of-production depreclation LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense Depreciation expense per unit Year Annual Production (units) Depreciation Expense 2

Year 1 January 1 Paid $294,000 cash plus $11,760 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,400 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,800 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,200 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 1 2 3 4 5 6 Paid $294,000 cash plus $11,760 in sales tax and $1,700…

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Annual Depreciation Expense Depreciation expense Choose Factor(%) Choose Factors: %3D %3D First year's depreciation Second year's depreciation %3D

Year 1 January 1 Paid $318,000 cash plus $12,720 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,800 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,000 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 6 Recorded annual straight-line depreciation on the loader. Note:…

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $500,000. The ovens originally cost $690,000, had an estimated service life of 10 years, had an estimated residual value of $40,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.   Problem 7-8A Part 3 3. What is the gain or loss on the sale of the ovens at the end of the second year?

Willow Creek Company purchased and installed carpet in its new general offices on July 30 for a total cost of $6,528. The carpet is estimated to have a 8-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. July 30 Carpet v 6,528 V Cash v 6,528 Feedback V Check My Work Is this purchase improving or extending the life of the asset? Or is this purchase something that will only benefit this period? b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method. Do not round intermediate calculations. Dec. 31 Depreciation Expense-Carpet v 476 X Accumulated Depreciation-Carpet v 476 X