Machinery purchased for $67,800 by Sunland Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,520 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $5,085 at the end of that time. Assume straight-line depreciation. (a) Prepare the entry to correct the prior years' depreciation, if necessary. Of no entry is required, select "No entry for the account titles: and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry)
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- Current Attempt in ProgressMachinery purchased for $60,000 by Tom Brady Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of$4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the totalestimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation.Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation. (a) X Your answer is incorrect. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Machinery Debit MacBook 7757.5 CreditMachinery purchased for $65,400 by Bonita Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,360 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,905 at the end of that time. Assume straight-line depreciation. (a) Your answer is correct. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation (b) No Entry No Entry eTextbook and Media List of Accounts Debit Account Titles and Explanation 0 Debit Credit Prepare the entry to record depreciation for 2026. (If no entry is required, select "No entry" for the account titles and enter O for the…
- Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation.Machinery purchased for $65,400 by Bonita Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,360 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,905 at the end of that time. Assume straight-line depreciation. (a) Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit CreditGandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January 2022. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $84,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2022, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2024, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2024, the third year of the equipment's life. X Answer is not complete. $ 16.550✔ $365,350✔ a. Depreciation expense a. Net book value b. Double-declining rate b. Depreciation expense
- Machinery purchased for $68,400 by Bramble Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,560 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $5,130 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if necessary.Depreciation ProblemA machine which cost $400,000 is acquired on August 1, 2020. Its estimated salvagevalue is $30,000 and its expected life is 8 years.InstructionsCalculate depreciation expense for 2020 and 2021 by each of the followingmethods, showing the figures used.(a) Double-declining balance(b) Sum-of-the-years'-digitsRanjit Inc. purchases equipment on January 1, 2025 at a cost of $500,000. The equipment has an expected useful life of 10 years and an estimated salvage value of $50,000. The depreciation expense for 2026 using the straight-line depreciation method is [Select] The depreciation expense for 2026 using the sum of the years' digits depreciation method is [Select] The depreciation expense for 2026 using the double-declining depreciation method is [Select]
- Current Attempt in Progress Equipment was acquired on January 1, 2025 at a cost of $168,000. The equipment was originally estimated to have a salvage value of $8,800 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2027 using the straight-line method. On January 1, 2028, the estimated salvage value was revised to $14,800 and the useful life was revised to a total of 8 years. Prepare the journal entry to record depreciation expense for 2028. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Depreciation expense for 2028 $ Adjusting journal entry at 12/31/28: Date Dec. 31 Account Titles and Explanation Debit CreditLemon Company bought a machine on January 1, 2019. The machine cost $72,000 and had an expected salvage value of $12,000. The life of the machine was estimated to be 5 years. Using straight line depreciation, the book value of the machine at the beginning of the third year would be: Select one: a. $48,000 b. $60,000 c. $24,000 d. $36,000Machinery purchased for $67,200 by Coronado Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $ 4,480 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,040 at the end of that time. Assume straight-line depreciation. (a) Your answer is partially correct. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Machinery Debit 4592 Credit 4592