Question
ABC Company purchased equipment on January 1, 2016 for $30,000 with a salvage value of $3,000...
ABC Company purchased equipment on January 1, 2016 for $30,000 with a salvage value of $3,000 and 5 years useful life. The company decided to retire the equipment on October 1, 2020.
Compute the amount of:
Annual Depreciation Expense: *
a-$4,050
b-$4,350
c-$5,400
d-$21,600
Depreciation Expense of the Year 2017: *
a-$1,350
b-$2,700
c-$4,050
d-$5,400
Depreciation Expense of the Year 2020: *
a-$1,350
b-$2,700
c-$4,050
d-$5,400
Accumulated Depreciation at disposal date: *
a-$21,600
b-$22,950
c-$24,300
d-$25,650
Book Value at disposal date: *
a-$7,050
b-$5,700
c-$4,350
d-Zero
Loss on Disposal: *
a-$7,050
b-$5,700
c-$4,350
d-Zero
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
ABC Company purchased equipment on January 1, 2019 for $10,000 with a salvage value of $2,000...
ABC Company purchased equipment on January 1, 2019 for $10,000
with a salvage value of $2,000 and 2 years useful life. The company
decided to sell the equipment on October 1, 2020 for $3,000.
Compute the amount of:
Annual Depreciation Expense .
Depreciation Expense of the Year 2019
Depreciation Expense of the Year 2020
Accumulated Depreciation at disposal date
Book Value at disposal date
Gain or Loss on Disposal amount
On January 1, 2019, ABC Company purchased a new piece of equipment. The equipment was assigned...
On January 1, 2019, ABC Company purchased a new piece of equipment.
The equipment was assigned a $7,000 residual value and is expected
to produce a total of 60,000 units over its life. The depreciation
expense reported on the equipment for 2019 was $10,734. During 2020,
the equipment was used to produce 9,000 units. At December 31, 2020,
the book value of the equipment was $57,466. ABC Company is using the
units-of-production depreciation method to depreciate the equipment.
Calculate the...
On January 1, 2020, ABC Company spent $400,000 to purchase equipment. The equipment was assigned a...
On January 1, 2020, ABC Company spent $400,000 to purchase
equipment. The equipment was assigned a $10,000 residual
value and a 20-year life. ABC Company will depreciate the
equipment using the straight-line method. On January 1, 2025,
ABC Company spent $37,000 to overhaul the equipment. This
capital expenditure resulted in ABC Company changing the life
of the equipment from 20 years to 30 years and adjusting the
residual value to be $12,000 at the end of the 30 years.
Calculate...
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...
(a) Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at...
(a) Brown Company
purchased equipment in 2008 for $150,000 and estimated a $10,000
salvage value at the end of the equipment's 10-year useful life. At
December 31, 2014, there was $98,000 in the Accumulated
Depreciation account for this equipment using the straight-line
method of depreciation. On March 31, 2015, the equipment was sold
for $40,000.
Indicate the accounts
that are increased and/or decreased to remove the equipment from
the books of Brown Company on March 31, 2015.
(b) Finney...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end...
On
January 1, 2021, Canseco Plumbing Fixtures purchased equipment for
$30,000. Residual value at the end of an estimated four-year
service life is expected to be $2,000. The company expects the
equipment to operate for 10,000 hours. The equipment operated for
2,200 and 3,000 hours in 2021 and 2022, respectively.
Required:
a. Calculate depreciation expense for 2021 and
2022 using straight line method.
b. Calculate depreciation expense for 2021 and
2022 using double-declining balance method.
c. Calculate depreciation expense for...
ABC Ltd purchases equipment for $1,000,000 on January 2, 2019. The equipment has a useful life...
ABC Ltd purchases equipment for $1,000,000 on January 2, 2019.
The equipment has a useful life of five years, is depreciated using
the straight‐line method of depreciation, and its residual value is
zero. ABC chooses the revaluation model for its equipment over the
life of equipment. The fair value of equipment at 31 December 2019
(the end of reporting period of ABC Ltd) is $950,000. The fair
value of equipment at 31 December 2020 is $570,000. Indicators of
impairment were...
ABC Company purchased equipment on January 1, 2009 for $70,000. It was estimated that the equipment...
ABC Company purchased equipment on January 1, 2009 for $70,000.
It was estimated that the equipment would have a $5,000 salvage
value at the end of its 4-year useful life. It was also estimated
that the equipment would produce 100,000 units over its 4-year
life. The company used the straight-line depreciation method. If
16,000 units of product were produced in 2009 and 24,000 units were
produced in 2010, what was the book value of equipment at December
31, 2010?
On October 1, 2019, ABC Company loaned A. Jenkins $9,000 at an annual interest rate of...
On October 1, 2019, ABC Company loaned A. Jenkins $9,000 at an
annual interest rate of 5% with a maturity date of April 1, 2020.
On October 1, 2019, ABC Company will record __________.
A. a credit to Notes Payablelong — A. Jenkins of $9,000
B. a debit to Notes Receivable—A. Jenkins of $9,450
C. no entry since the note is due on April 1, 2020
D. a debit to Notes Receivable —A. Jenkins of $9,000
On January 1, 2017, Atlantic Company purchased a new warehouse for $840,000 with a salvage value...
On January 1, 2017, Atlantic Company purchased a new warehouse
for $840,000 with a salvage value of $40,000 and an estimated
useful life of 40 years. Atlantic has chosen to use the
double-declining balance method of depreciation. The journal entry
to record the depreciation expense of 2018 would include:
Question 19 options:
A. a debit to Depreciation Expense for $42,000.
B. a debit to Depreciation Expense for $39,900.
C. a credit to Accumulated Depreciation for $42,000.
D. a debit to...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 5 minutes ago
asked 9 minutes ago
asked 9 minutes ago
asked 9 minutes ago
asked 21 minutes ago
asked 30 minutes ago
asked 32 minutes ago
asked 35 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago