Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. (A) Calculate the book value at the time of the revision (January 1, 2017). (B) Determine the depreciation expense for 2017

Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. (A) Calculate the book value at the time of the revision (January 1, 2017). (B) Determine the depreciation expense for 2017

Name: Equipment was acquired on January 1, 2013, at a cost of $75,000. The e
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originallyestimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has beenrecorded through December 31, 2016, using the straight-li

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

See similar textbooks

Similar questions

IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
Martin Corporation acquired a truck on January 1, 2016, at a cost of $84,000. The truck was originally estimated to have a salvage value of $4,000 and an estimated useful life of 8 years. Depreciation had been recorded through December 31, 2018, using the straight-line method. On January 1, 2019, the estimated salvage value was revised to $6,000, and the useful life was revised to a total of 7 years. Required: (Show all calculations) Calculate the annual depreciation expense for the years 2016 through 2018. a. b. Calculate the book value of the truck at December 31, 2018. с. Calculate the depreciation expense per year after revision. d. If the truck is sold at a gain, how is the statement of financial position affected?
Equipment was acquired on January 1, 2025 at a cost of $162,000. The equipment was originally estimated to have a salvage value of $8,200 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2027 using the straight-line method. On January 1, 2028, the estimated salvage value was revised to $14.200 and the useful life was revised to a total of 8 years. Prepare the journal entry to record depreciation expense for 2028. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Depreciation expense for 2028 Adjusting journal entry at 12/31/28: $ Date Account Titles and Explanation Dec. 31 eTextbook and Media List of Accounts Somforter Debit Credit
Clean Corporation purchased a depreciable asset for $1,560,000 on January 1, 2015. The estimated salvage value is $120,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2018, Hollander changed its estimates to a total remaining useful life of 8 years with a salvage value of $200,000. What is 2018 depreciation expense? A) $160,000 OB) $200,000 C) $240,000 D) $110,000
Equipment was acquired on January 1, 2025 at a cost of $162,000. The equipment was originally estimated to have a salvage value of $8,200 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2027 using the straight-line method. On January 1, 2028, the estimated salvage value was revised to $14,200 and the useful life was revised to a total of 8 years. Prepare the journal entry to record depreciation expense for 2028. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Depreciation expense for 2028 $ Adjusting journal entry at 12/31/28: Date Account Titles and Explanation Dec. 31 eTextbook and Media List of Accounts Save forlater Debit Credit
A truck was acquired on July 1, 2018, at a cost of P216,000. The truck had a six-yearuseful life and an estimated salvage value of P24,000. The straight-line method ofdepreciation was used. On January 1, 2021, the truck was overhauled at a cost ofP20,000, which extended the useful life of the truck for an additional two years beyondthat originally estimated (salvage value is still estimated at P24,000). In computingdepreciation for annual adjustment purposes, expense is calculated for each month theasset is owned. Prepare the appropriate entries for January 1, 2021 and December 31,2021. Show supporting computations.
Clean Corporation purchased a depreciable asset for $1,560,000 on January 1, 2015. The estimated salvage value is $120,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2018, Hollander changed its estimates to a total remaining useful life of 8 years with a salvage value of $200,000. What is 2018 depreciation expense? A) $160,000 (B) $200,000 (C) $240,000 (D) $110,000
Equipment was purchased for $120,000 on March 1, 2016. Its estimated useful life is eight years with a $12,000 expected salvage value. Using double-declining balance depreciation, the 2017 depreciation expense is: A) $22,500 B) $27,000 C) $23,750
ABC Company acquired a machine on January 1, year 2016 for $100,000. The machine is depreciated using the double-declining- balance method, and was estimated to have a 10 year useful life and a salvage value of $10,000. On January 1, year 2018, the company revised its estimations as: a useful life of 5 years beginning from that date, and with a salvage value of $15,000 at the end of 5 years. How much depreciation expense should ABC Company recognize in year 2018? Multiple Choice 13,400 O 21,040 25,600 16,000
A truck was acquired on July 1, 2012, at a cost of $216,000. The truck had a six-year useful life and an estimated residual value of $24,000. The straight-line method of depreciation was used. On January 1, 2015, the truck was overhauled at a cost of $20,000, which extended the useful life of the truck for an additional two years beyond that originally estimated (residual value is still estimated at $24,000). In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned. Instructions Prepare the appropriate entries for January 1, 2015 and December 31, 2015
On January 1, 2014, ABC Company purchased a machine for P504,000 that was placed in service on March 1, 2014. Additional cost incurred to bring the asset to its location and prepare for its intended use were: shipping, P4,000 and installation and testing cost, P6,000. The estimated useful life of the asset was 10 years and has an estimated salvage value of P34,000. What amount of depreciation should be recognized for the year ended December 31, 2014?