Problem 9-4B Calculating depreciation-partial periods LO2, 3 eXcel CHECK FIGURES: 1B, 2025 Depreciation expense $53,200; 2A. 2025 Depreciation expense = $84,672 LiveReel Media purchased for $588,000 machinery having an estimated useful life of 10 years with an estimated residual value of $56,000. The company's year-end is December 31. Depreciation is calculated using the half-year rule. Required Complete the following schedules: 1. Assuming the purchase was made on January 1, 2023 2. Assuming the purchase was made on April 1. 2023 A. Double-declining balance method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year W B. Straight-line method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2023 |||| 2024 |||| ||||| 2025 =

Problem 9-4B Calculating depreciation-partial periods LO2, 3 eXcel CHECK FIGURES: 1B, 2025 Depreciation expense $53,200; 2A. 2025 Depreciation expense = $84,672 LiveReel Media purchased for $588,000 machinery having an estimated useful life of 10 years with an estimated residual value of $56,000. The company's year-end is December 31. Depreciation is calculated using the half-year rule. Required Complete the following schedules: 1. Assuming the purchase was made on January 1, 2023 2. Assuming the purchase was made on April 1. 2023 A. Double-declining balance method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year W B. Straight-line method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2023 |||| 2024 |||| ||||| 2025 =

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Description: do not give solution in image format Problem 9-4B Calculating depreciation-partial periods LO2, 3 eXcelCHECK FIGURES: 1B. 2025 Depreciation expense = $53,200; 2A. 2025 Depreciation expense = $84,672LiveReel Media purchased for $588,000 machinery havi

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14RE: (Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a...

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(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
Problem 9-15A Partial-period depreciation; disposal of PPELO2, 3, 6 CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867 Endblast Productions showed the following selected asset balances on December 31, 2020: Land.. Building.... Accumulated depreciation, building ¹. Equipment... Accumulated depreciation, equipment².. $396,800 526,400 393,600 Required Prepare the entries for each of the following (round final calculations to the nearest whole dollar). 1. The land and building were sold on September 27, 2021, for $592,000 cash. 2. The equipment was sold on November 2, 2021, for $56,800 cash. 171,200 74,400 ¹ Remaining estimated useful life is eight years with a residual value of $80,000; depreciated using the straight-line method to the nearest whole month. 2 Total estimated useful life is 10 years with a residual value of $16,000; depreciated using the double-declining-balance method to the nearest whole month.
Exercise 10-24 On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows. Machine $1,872,000 Less: Accumulated depreciation 518,400 Book value $1,353,600 Depreciation is computed at $86,400 per year on a straight-line basis.Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If…
1 ances QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Beginning of Perlod Book Value 070,000 Depreciation Depreciation Rate (%) Expense End of Period Accumulated Depreciation Book Value
Exercise 7-12A Determine straight-line depreciation for partial periods (LO7-4) Togo's Sandwiches acquired equipment on April 1, 2021, for $16,500. The company estimates a residual value of $1,700 and a five-year service life. Required: Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end. 2021 2022 Depreciation expense e here to search ASUS
Problem 9Hilarious Company provided the following data pertaining to machinery on the date of revaluation: Cost Replacement costMachinery 4, 500, 000 7, 500, 000Accumulated depreciation 900, 000 Age of asset 3 yearsRevised Life of the asset 10 years Required:1. Appreciation or revaluation increase2. Carrying amount3. Depreciated replacement cost4. Revaluation surplus5. What is the original life of the asset?6. Prepare the journal entry to record the revaluation 7. What is/are the rules in solving the problem?
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? 3,024,00 x Feedback V Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assume that the equipment was sold on April 1 of the fifth year for $125,000. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Depreciation Expense-Equipment Accumulated Depreciation-Equipment
EXERCISE 9.6 Revision of Depreciation Estimates e LO9-3 Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2017, the company purchased a machine costing $90,000. The machine's useful life was estimated to be 12 years with an estimated residual value of $18,00o. Depreciation for partial years is recorded to the nearest full month. In 2021, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2021. a. Prepare journal entries in chronological order for the given events, beginning with the purchase of the machinery on January 11, 2017. Show separately the recording of depreciation expense in 2017 through…
QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $870,000 with an estimated useful life of eight years, and salvage value of $78,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate(%) Beginning of Period Book Value Depreciation Expense End of Period Accumulated Depreciation Book Value
Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2] The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Depreciation Expense = $ 11,650 Formula Beginning Book Value Double-Declining-Balance Method xDouble the Straight-line Rate X Fraction of Year = Amount for 2024 $ 233,000 x 20 % x 3/12 Amount for 2025 X 20 % * 12/12 =
Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 $fill in the blank 3b987ff9206ffcf_1 Year 2 $fill in the blank 3b987ff9206ffcf_2 Year 3 $fill in the blank 3b987ff9206ffcf_3 2. What is the book value of the equipment on January 1, Year 4?$fill in the blank 3b987ff9206ffcf_4 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Cash Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Loss on Sale of Equipment Loss on Sale of Equipment Equipment Equipment 4. Assuming that the equipment is sold on…
Exercise 6-15 (Algo) Depreciation calculation methods LO 6-3 Millco Incorporated acquired a machine that cost $408,000 early in 2022. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $62,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life. c. What will be the net book value of the machine at the end of its eight year of use before it is disposed of, under each depreciation method? Complete this question by entering your answers in the tabs below. Req A to B Req C a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the…