Problem 27-13 (AICPA Adapted) Sahaya Company takes a full depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. An asset was acquired in 2017. Cost Residual value Accumulated depreciation - January 1, 2020 Estimated useful lif 1,100,000 200,000 720,000 5 years Using the same method in 2017, 2018 and 2019, what depreciation should be recorded in 2020? а. 120,000 b. 180,000 с. 220,000 d. 240,000 ana Adonted)

Problem 27-13 (AICPA Adapted) Sahaya Company takes a full depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. An asset was acquired in 2017. Cost Residual value Accumulated depreciation - January 1, 2020 Estimated useful lif 1,100,000 200,000 720,000 5 years Using the same method in 2017, 2018 and 2019, what depreciation should be recorded in 2020? а. 120,000 b. 180,000 с. 220,000 d. 240,000 ana Adonted)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3E: Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019....

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Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?
Problem 27-16 (AICPA Adapted) Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Accumulated depreciation Acquisition date Residual Asset Cost 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000. 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 3ọ, 2020. O on Asset A is depreciated under the double declining method. 1: What is the depreciation of Asset A for 2020? 1,600,000 b. а. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 ansuming same method in prior years? а. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 c. 356,000 d. 804,000 CS Scanned with CamScanner ABC
Determine the Depreciation Expense for the calendar year 2019 on the following non - current assets of ABC Company based on straight line method of depreciation: Acquisition Salvage Est. Asset Cost Depreciation Date Value Life Computer Jun 01, 2019 P70,000 P10,000 4 ||
Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $26,250 Years 5 Residual value $1,050 Service hours 21,000 Productive output (units) 50,400 e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 Answer Answer Answer Answer Answer
Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..
Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000 and decided to depreciate it at 10% per annum on straight-line basis. The replacement value of the asset on the following dates was noted as follows 31.12.2017----OMR 120,000 31.12.2018------OMR 150,000 31.12.2019--OMR 200,000 Assuming depreciation is chargeable on the basis of the year-end replacement value. Under CCA method of inflation accounting, you are required to compute for each of the 3 years: 1. Depreciation adjustment 2. Backlog depreciation
Bitter Company acquired a machinery on April 1, 2020. Problem 27-9 (ACP) Cost Residual value Estimated useful life What is the depreciation for 2020 using sum of years' 1,200,000 120,000 8 years digits? a. 180,000 b. 240,000 c. 120,000 d. 160,000 1 What is the depreciation for 2021 using sum of years' digits? a. 157,500 b. 217,500 c. 210,000 d. 105,000 3. What is the depreciation for 2020 using double declining balance? a. 300,000 b. 150,000 c. 225,000 d. 202,500 4. What the depreciation for 2021 using double declining balance? a. 270,000 b. 135,000 c. 243,750 d. 150,000
An asset acquired January 1, 2018, for OMR 20,000 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. Using the sum-of-the-years'-digits method, depreciation for 2019 would be: Select one: A. 10,667 B. 12,000 C. 13,333 D. 9,333
Q42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of Backlog depreciation. a. OMR 50,000 b. None of these are correct c. OMR 85,000 d. OMR 15,000