The second year (2019) of depreciation on a computer costing $5,000 purchased in May 2018, using the half-year convention and accelerated depreciation considering any bonus depreciation taken.
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b. The second year (2019) of
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- During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.Suppose that a company purchases a computer to be used in the manufacturing department at the beginning of 2019. The price paid is 4.800 TL. The useful life of the computer is 4 years. Let's assume that the company employs accelerated method of depreciation in annual terms. What would be the journal entry regarding the depreciation at the end of 2019? What if the company switches to the straight-line method at the beginning of 2020? What would be the journal entry regarding the depreciation at the end of 2020 then?Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 7 8 9 10 11 Totals 3 years 33% 45% 15% 7% Percentage by recovery year* 5 years 20% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention.
- On January 1, 2019, Williams Company purchased a copy machine. The machine costs $160,000, its estimated useful life is 8 years, and its expected salvage value is $10,000. What is the depreciation expense for 2020 using double-declining-balance method?The Depreciators Inc purchases and begins using equipment costing $175 on Sept 1, 2020. There was an additional cost of $15 for delivery and installation. The Depreciators expects to use the equipment over a 3 year useful life and estimates the salvage value to be $10. DI uses the straight line method for calculating depreciation. Determine the following. Pay attention to the dates being asked!: a) Net Book Value of the equipment as of December 31, 2020 $ b) Depreciation Expense for the year ending Dec 31, 2021 $ c) Accumulated Depreciation for the year ending Dec 31, 2023 You must show your work on your PDF upload to receive credit. You may prepare journals, TAccounts, or a table to determine your answers. The choice is yours, but your calculations should be logically presented so I can follow what you have done.how to calculate monthly depreciation using the double declining depreciation method. Purchase Price: $3600 Useful life: 3 years Estimated residual value: $300 bought march 2 2019. need to calculate monthly depreciation expense for the year of 2019
- Regarding double-declining balance depreciation: A new machine is purchased for $84,000 in early 2019. The machine is expected to have a five-year useful life and is estimated to have a salvage value of $14,000 at the end of it's life. Using Double-declining balance depreciation calculate the depreciation expense for years 1-4.On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had an estimated salvage value of $4,000 and an estimated life of 7 years. Your company was using the sum of the years' digits method of depreciation method and records depreciation annually on December 31. A. Prepare the journal entries and show your calculations for November 1, 2020 December 31, 2020 December 31, 2021 1. 2. 3. Assume at the end of 2021, the equipment was becoming obsolete. You estimated future cash flows from the equipment would be $29,000. An appraisal of the value of the equipment on December 31, 2021, indicated a fair value of $23,000. Prepare the entry for impairment (if needed). В. Assume the equipment was NOT becoming obsolete, so ignore any impairment in part B. Assume you changed from sum of the years' digits method to straight line method of depreciation on March 1, 2022. Prepare all entries related to the equipment and depreciation on С. March 1, 2022 December 31, 2022 1. 2.Sally Kremer purchased a computer for $9,120 on July 1, 2020. She intends to depreciate it over 4 years using the double-declining-balance method. Salvage value is $1,140. Compute depreciation for 2021. Depreciation for 2021 $Type your answer here
- A Company purchased equipment on January 1, 2019 for AED 70,000. It is estimated that the equipment will have a AED 5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Required: Solve the following independent questions where you need to show all the required calculations: Part A Compute the amount of depreciation expense for the year ended December 31, 2020, using the straight-line method of depreciation. Part B:- If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the book value of the equipment at December 31, 2020? The company uses the units-of-activity depreciation method. I Part C If the company uses the double-declining-balance method of depreciation, what is the balance of the Accumulated Depreciation-Equipment account at December 31, 2020?purchased on January 01, 2019 for $600,000. The expected life is 8 years. salvage value is $10000. Calculate the second year depreciation amount using the straight line method.Lord Company purchased a machine on January 2, 2019, for $70,000. The machine had an expected residual value of $10,000, an expected life of 8 years or 24,000 hours, and a capacity to produce 100,000 units. During 2019, Lord produced 12,000 units in 2,500 hours. In 2020, Lord produced 15,000 units in 3,000 hours. Required: 1 a. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the Straight-line method. b. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the activity method based on hours worked. c. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value of the asset at the end of 2019 and 2020 for the activity method based on units of output.
