Question

Please do it by type not pics. Cost of equipment .   $       469,000 Estimated service life...

Please do it by type not pics.

Cost of equipment .   $       469,000

Estimated service life in years 12

Salvage value $         40,000

1.Calculate the book value of the equipment at the end of year 2 month 3 using the following information assuming the straight-line method and that depreciation is accrued for monthly.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Computation of book value of the equipment

Given:

Cost of equipment=$469000

Salvage value =$ 40000

Useful life =12years

Formula for depression under straight line method:

Depreciation= equipment cost - scrap value/useful life

Depreciation in monthly basis= depreciation /12months

Depreciation=$469000-$40000/12years

=$35750 yearly

Depreciation monthly=$35750/12months

=$2979 per month

Book value of equipment

at the end of first month =$469000-$2979

= $466021

Book value of equipment

at the end of 2nd month. =$466021-$2979

= $463042

Book value of equipment

at the end of 3rd month =$463042-$2979

=$460063

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
Cheyenne Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5...
Cheyenne Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $14,500 $536,500 Building, estimated service life, 30 years; no salvage value $669,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2018, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage...
Granzatto, Inc. acquired the following assets in January 2015: Equipment, estimated service life, 5 years; no...
Granzatto, Inc. acquired the following assets in January 2015: Equipment, estimated service life, 5 years; no salvage value $650,000 Building, estimated service life, 40 years; salvage value, $500,000 $5,500,000 The equipment has been depreciated using the double-declining balance method for the first 2 years for financial reporting purposes. In 2017, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value....
Sheffield Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5...
Sheffield Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $ 14,800 $ 515,800 Building, estimated service life, 30 years; no salvage value $ 642,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2018, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service...
Hudson Landscaping Service bought equipment for $10,800 on January 1, 2019. It has an estimated useful...
Hudson Landscaping Service bought equipment for $10,800 on January 1, 2019. It has an estimated useful life of five years andzero residual value. Hudson uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. Calculate the adjustment and the journalize the adjusting entry for January 31st. What is the book value of the equipment on December 31st, 2019?
Exercise 22-8 Sage Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service...
Exercise 22-8 Sage Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $16,200 $503,700 Building, estimated service life, 30 years; no salvage value $648,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2018, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life...
a company has purchased equipment whose first cost is $ 100,000 with an estimated life of...
a company has purchased equipment whose first cost is $ 100,000 with an estimated life of eight years.the estimated salvage value of the equipment at the end of its lifetime is $ 20,000 determine the depreciation charge and book value at the end of various years using sinking fund method of depreciation with an interest rate of %12 compounded annually
Equipment acquired on January 8, 2013, at a cost of $113,950, has an estimated useful life...
Equipment acquired on January 8, 2013, at a cost of $113,950, has an estimated useful life of 12 years, has an estimated residual value of $7,150, and is depreciated by the straight-line method. Required: A. What was the book value of the equipment at December 31, 2016, the end of the year? B. Assuming that the equipment was sold on July 1, 2017, for $67,430, journalize the entries to record (1) depreciation for the six months until the sale date,...
Equipment with a cost of $649,900 has an estimated residual value of $74,800, has an estimated...
Equipment with a cost of $649,900 has an estimated residual value of $74,800, has an estimated useful life of 27 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 12 full years of use. $ c. Assuming that at the start of the year 13 the remaining life is estimated to be 21 years and the residual value is estimated to be $73,000, determine the depreciation...
Novak Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5...
Novak Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $15,400 $547,900 Building, estimated service life, 30 years; no salvage value $708,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage...
Ivanhoe Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5...
Ivanhoe Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $14,800 $560,800 Building, estimated service life, 30 years; no salvage value $690,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT