Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7- 5) [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $79,000 Accumulated Depreciation Book Value 0 $79,000 444,000 $(159,840) 284,160 221,600 170,000 (46,800) (68,000) 174,800 102,000 • Stevens purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. • • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Problem 7-7A (Algo) Part 1 Required: .For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not lepreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record depreciation of the building. >
Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7- 5) [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $79,000 Accumulated Depreciation Book Value 0 $79,000 444,000 $(159,840) 284,160 221,600 170,000 (46,800) (68,000) 174,800 102,000 • Stevens purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. • • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Problem 7-7A (Algo) Part 1 Required: .For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not lepreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record depreciation of the building. >
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
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