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Depreciation, Disposal Practice Question (Plant Assets)

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Tehreem Bukhari
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27 views5 pages

Depreciation, Disposal Practice Question (Plant Assets)

Uploaded by

Tehreem Bukhari
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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was acquired on January 1, 2008, at a cost of $264,000, has an estimated useful Q. Equipment Ir life of eight years and an estimated residual value of $31,500, Instructions : 2) What was the annual amount of depreciation for the years 2008, 2009, and 2010, using the straight-line method of depreciation? b) What was the book value of the equipment on Jan 1, 2010? ©) Assuming that the equipment was sold on Jan 4, 2010, for $168,500, journalize the entry to record the sale. d) Assuming the equipment had been sold on Jan 4, 2010, for $180,000 instead of $168,500; journalize the entry to record the sale. Scanned with CamScanner Example Exercise 9-6 Equipment was acquired at the beginning of ihe year at a cdst of $91,000. The equipment was depre- ciated using the straightdine method based on an estimated useful life f nine.years and an estimated esidual value of $10,000. : a, What was the depteciation for the first year? 'b.. Assumirig the equipment ws sold at the end of the'second year for $78,000, determine the gain or + ‘loss on sale of the equipment. : Journalize the entry ta record the sale, Scanned with CamScanner 7 Demonstration Probi. ere Of April J, 2015, Sones Industri purchased new equipment a ofthis equipment was estimated at five years, with a residual value of $23,000, Instructions ‘Compute the annual depreciation exrase for c2ch year ust this equipment becomes fl below. Because 3ou will record dep charge A the ee pips ead ied ba Si ee office equipment amounted to $21,800- $1000 cath and e-year Speeene ee nr Hehost' ears howd loving noon Land 0 a. es ee tere nied Digest: ding (atthe date of Spon, $250,000. me JH Lino jn an old truck for a new one, The old truck had cost $26,000, and San ts accom ai d depreciation amounted to $18,000. The lst price ofthe new truck was : So chock ted 1000 onde Allowance forthe old truck and ae $28.00 Hitchooct’ includes trucks inits Vehicles account. clicock wade hn AsoKd computer syste part ofthe purchase Trveld pen ad cow 15,0 a oocamaleprcntonemosted sal ‘$11,000. The new computer’ list price was $8,000, Hitchcock gccepted a trade-in byob mag *-alldwance of $$00 forthe old computer system, paying’S1,500 down in cash and issuing a one-year, 8 percent note payable fr the $6009 balance owes. « instructions fa.» Prepare journal entries to reeord each of the disposal transitions, Assume that depreioton apense on each aset has been recorded up tthe dt of disposal Thus, you need not vpdate the eccumulated depreciation figures stated in the problem. bb, Willthe guns and losses recorded in part a above aflet the goss profit reported in Hitchcock's income statement? Explain. c. Explain how the financial reporting financial reporting of unrealized gains Chapter 7. ‘During the current year, Reddick Corporation incurred the following expenditures which ‘must be ‘recorded either as operating ‘expenses or as intangible assets: ; = were made forthe training of 1¥ employers. The werage empyema th. for five years, but rind for ne ostan ev 0 8 iy te Ranta cen elk gains and fosses on plant assets differs from the fnd losses on marketable securities discussed in a in developing a ditiresis- tert Ga tra be! are years: ‘The legal Jife of the patent however, quite popular ‘leaner. The patent bad ic seen oral the product fr only ic Games. Reddick» Oy its product lines. & a € sig expena oar ld be scot ge De number ot Vet Scanned with CamScanner dial ee Se ena ge wine 00 pf ie OE pe ay et ath eee 424 spe aie each abet RAR 8 Bie gale WO gcoe ay 1, 2025. The furniture j, © erlang 6 dat as a ng PENGITES WETS BSSCin rare fOr HS ¥ the gain or loss gurvitore pe fol new forme. son, DDS. porbsses 7 doa ‘ LO$-1 through LO9-3, Ps a to-year life end Sy Loss to have # 10-9 2 Sy PROBLEM 9.38 Lies 4 Issues Involving Alternative Cog ofthe furniture § Depreciation Methods Freight charpes « 1 Sais toes. ato eran rete ination Ad ms Cost to repair furniture OO cet Instructions ; fot the mi depreciation expense rmeod listed below: years rounded 1. Straight-line, ri using the hal fi 2. 200 percent declining: ae using the half-year convention. 3. merce dsnngtltee ENE anagement wants to report the high, Davide, DDS, has two conic ig Ts, yet it also wants to minimize ite taxable!

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