Question

Equipment was purchased at the beginning of 2018 for $900,000. At the time of its purchase,...

Equipment was purchased at the beginning of 2018 for $900,000. At the time of its purchase, the equipment was estimated to have a useful life of five years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $30,000. The amount to be recorded for depreciation for 2022 is _______

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2) Equipment was purchased at the beginning of 2019 for $900,000. At the time of its...
2) Equipment was purchased at the beginning of 2019 for $900,000. At the time of its purchase, the equipment was estimated to have a useful life of five years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of seven years and the expected salvage value was changed to $42,500. The amount to be recorded...
Equipment was purchased at the beginning of 2016 for $1,700,000. At the time of its purchase,...
Equipment was purchased at the beginning of 2016 for $1,700,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage value of $200,000. The equipment was depreciated using the straight-line method of depreciation through 2018. At the beginning of 2019, the estimate of useful life was revised to a total life of ten years (from the beginning Jan 1, 2016) and the expected salvage value was changed to $50,000....
George & Co. purchased a machine on January 10, 2018. The total cost of the purchase...
George & Co. purchased a machine on January 10, 2018. The total cost of the purchase was $116,000. The machine has an estimated salvage value of $14,000 and an estimated useful life of 6 years. In May of 2018, the company spent $4,000 to overhaul the machine’s engine; this changed the estimate of the machine’s total useful life to 8 years. Depreciation for 2018 was recorded before the overhaul. Show calculations for the annual straight-line depreciation amounts for this asset...
At the beginning of 2018, Swifty Company acquired equipment costing $166,000. It was estimated that this...
At the beginning of 2018, Swifty Company acquired equipment costing $166,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $16,600 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2020 (the third year of the equipment’s life), the company’s engineers reconsidered their expectations and estimated that...
Saturn Company purchased a machine on January 1, 2018, for $900,000. At the date of acquisition,...
Saturn Company purchased a machine on January 1, 2018, for $900,000. At the date of acquisition, the machine had an estimated useful life of ten years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Saturn determined that the machine had an estimated useful life of 15 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information. What is the amount of...
ABC purchased equipment on January 1, 2018, for $650,000. In 2018 and 2019, ABC depreciated the...
ABC purchased equipment on January 1, 2018, for $650,000. In 2018 and 2019, ABC depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $10,000 residual value. In the beginning of 2020, due to changes in technology, ABC revised the remaining useful life to four years with no residual value. What depreciation would ABC record for the year 2020 on this equipment? A) $108,333 B) $106,667 C) $122,500 D) $134,000 Please explain and/or...
On January 1, 2018, Poultry Processing Company purchased a freezer and related installation equipment for $42,000....
On January 1, 2018, Poultry Processing Company purchased a freezer and related installation equipment for $42,000. The equipment had a three-year estimated life with a $3,000 salvage value. Straight-line depreciation was used. At the beginning of 2020, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,000. Required Compute the depreciation expense for each of the four years, 2018–2021. deprecial expense 2018 2019 2020 2021
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on...
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2021, when the equipment had been in use for 10 years, the company paid $54000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years. What will be...
Nanki Corporation purchased equipment on January 1, 2019, for $647,000. In 2019 and 2020, Nanki depreciated...
Nanki Corporation purchased equipment on January 1, 2019, for $647,000. In 2019 and 2020, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $15,000 residual value. In 2021, due to changes in technology, Nanki revised the useful life to a total of four years with no residual value. What depreciation would Nanki record for the year 2021 on this equipment?
9) Cedar Company purchased equipment that cost $100,000 on January 1, 2019. The entire cost was...
9) Cedar Company purchased equipment that cost $100,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had a ten-year life. Cedar uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Cedar is subject to a 20% tax rate. What is the adjustment to retained earnings at January 1, 2022? _______ 11) Saturn Company purchased a machine on January 1, 2018, for $900,000. At the date of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT