Marcus purchased a equipment which was an depreciable asset for P38,000 on January 1, 2017. The estimated salvage value is P6,000, and the estimated useful life is 4 years. The sum-of-the-years' digits method is used for depreciation. What is depreciation expense for the year 2019? A. 8,000. B. 11,400. C. 6,400. D. 12,800.

Marcus purchased a equipment which was an depreciable asset for P38,000 on January 1, 2017. The estimated salvage value is P6,000, and the estimated useful life is 4 years. The sum-of-the-years' digits method is used for depreciation. What is depreciation expense for the year 2019? A. 8,000. B. 11,400. C. 6,400. D. 12,800.

Name: Marcus purchased a equipment which was an depreciable asset forP38,00
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Marcus purchased a equipment which was an depreciable asset forP38,000 on January 1, 2017. The estimated salvage value is P6,000, andthe estimated useful life is 4 years. The sum-of-the-years' digitsmethod is used for depreciation. What is depreciat

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

See similar textbooks

Similar questions

Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
On January 1, 2019, Desert Company purchased equipment at a cost of $388,388. The equipment was estimated to have a salvage value of $12,035 and it is being depreciated over five years under the sum of years' digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2021? *round your answer to the nearest $1 62,726
Bautista Organizers purchased an equipment costing P50,000 on July 1, 2018. The equipment has an estimated useful life of 10 years with an estimated salvage value of P5,000. The balance of the accumulated depreciation account on December 31, 2019 is Choices: P7,500 P5,000 P4,500 P6,750
.Shine Corporation bought equipment on April 2, 2017 for P200,000. This equipment had an estimated useful life of 5 years and a salvage value of P20,000. Depreciation was computed using the sum of the years’ digits method. The equipment was sold for P120,000 on June 30, 2019. Prepare complete journal entries with supporting computation for the years 2017, 2018 and 2019.
PIKACHU purchased an equipment for 540,000 on January 1, 2020. The equipment has an estimated salvage value of 60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the accumulated depreciation as of the December 31, 2022?
On January 1, 2018, Carson Company purchased equipment at a cost of P420,000. The equipment was estimated to have a useful life of five years and a salvage value of P60,000. Carson uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2021? OP336,000 O P360,000 O P288,000 O P240,000
PIKACHU purchased an equipment for P540,000 on January 1. 2020. The equipment has an estimated salvage value of P60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the carrying value of the equipment on December 31, 2021?
On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated to be $24000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Sunland should record depreciation expense for 2021 on this machinery of O $75667. O $102903. O $97736. O $97972.
Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage value is $51000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $297000 $333000 $288000 $252000