Do not give image format Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2]Mercury Incorporated purchased equipment in 2022 at a cost of $143,000. The equipment was expected to produce 370,000 unitsover the next five years and have a residual value of $32,000. The equipment was sold for $71,900 part way through 2024. Actualproduction in each year was: 2022 = 52,000 units; 2023 = 83,000 units; 2024 = 42,000 units. Mercury uses units-of-productiondepreciation, and all depreciation has been recorded through the disposal date.Required:1. Calculate the gain or loss on the sale.2. Prepare the journal entry to record the sale.3. Assuming that the equipment was instead sold for $108,900, calculate the gain or loss on the sale.4. Prepare the journal entry to record the sale in requirement 3.Complete this question by entering your answers in the tabs below.Required 1Answer is not complete.No1Required 2 Required 3 Required 4Prepare the journal entry to record the sale.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roundintermediate calculations.Event1General JournalAccumulated depreciation-equipmentLoss on sale of equipmentRequired 2>››Debit15,600 xCredit15,600

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Description: Do not give image format Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2]Mercury Incorporated purchased equipment in 2022 at a cost of $143,000. The equipment was expected to produce 370,000 unitsover the next five years and

In units of production method, depreciation expense is arrived by dividing the depreciation value of…

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e years and have a residual value of $32,000. The equipment was so ch year was: 2022 = 52,000 units; 2023 = 83,000 units; 2024 = 42,00 d all depreciation has been recorded through the disposal date. the gain or loss on the sale. e journal entry to record the sale. that the equipment was instead sold for $108.900, calculate the gain

e years and have a residual value of $32,000. The equipment was so ch year was: 2022 = 52,000 units; 2023 = 83,000 units; 2024 = 42,00 d all depreciation has been recorded through the disposal date. the gain or loss on the sale. e journal entry to record the sale. that the equipment was instead sold for $108.900, calculate the gain

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Expenditures After Acquisition Roanoke Manufacturing placed a robotic arm on a large assembly machine on January 1, 2019. At that time, the assembly machine was expected to last another 3 years. The following information is available concerning the assembly machine. The robotic arm cost $225,000 and was expected to extend the useful life of the machine by 3 years. Therefore, the useful life of the assembly machine, after the arm replacement, is 6 years. The assembly machine is expected to have a residual value of $120,000 at the end of its useful life. Required: 1. Prepare the journal entry necessary to record the addition of the robotic arm. 2. Compute 2019 depreciation expense for the machine using the straight-line method, and prepare the necessary journal entry. 3. What is the book value of the machine at the end of 2019? 4. CONCEPTUAL CONNECTION What would have been the effect on the financial statements if Roanoke had expensed the addition of the robotic arm?
Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. X Answer is not complete. Double-Declining-Balance Method Fraction of Depreciation Expense Depreciation Expense Choose Numerator: Choose Denominator: !! Year Fraction of Year Formula Cost Minus Residual Straight-line Rate Amount for 2021 Amount for 2022 2$ 2 X x 3/12 11,650 %3D $ 2 X 10 X % 44,270 %3D
Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2] The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Depreciation Expense = $ 11,650 Formula Beginning Book Value Double-Declining-Balance Method xDouble the Straight-line Rate X Fraction of Year = Amount for 2024 $ 233,000 x 20 % x 3/12 Amount for 2025 X 20 % * 12/12 =
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2021 Amount for 2022 Choose Numerator: Beginning Book Value Answer is not complete. Double-Declining-Balance Method X Choose Denominator: X Double the Straight-line Rate % % X X X x Fraction of Year Fraction of Year 3/12 12/12 › › Depreciation Expense Depreciation Expense
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 3 3. Units of production (units produced in 2021, 13,000; units produced in 2022, 28,000). (Round "Depreciation per unit rate" answers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate…
E11-18 Depletion Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2019. It estimate that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of $20,000, after which the land could be sold for $10,000. In 2019, 80,000 tons were quarried and 60,000 tons sold. Costs of production (excluding depletion) are $4 per ton. Required: 1. Compute the depletion cost per ton. 2. Compute the total cost of the inventory at December 31, 2019. 3. Compute the total cost of goods sold for 2019.
Brief Exercise 11-15 (Algo) Change in principle; change in depreciation method [LO11-6] At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $131 million $10.1 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 20-year useful life, and a $2.1 million residual value. In 2024, the company switched to the double-declining-balance depreciation method What is depreciation on the building for 2024? Note: Do not round intermediate calculations. Enter your answer in whole dollars rounded to the nearest whole number. Depreciation
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1 of nd Problem 27-1 (IAA) Amicable Company purchased a machine at a cost of P635,000 January 1, 2020. It was estimated that the machine would I have a residual value of P35,000. on The estimated useful life is 5 years, 60,000 service hours and 150,000 production units. Actual operations Service hours Unit produced 2020 14,000 34,000 2021 13,000 32,000 2022 10,000 25,000 2023 11,000 29,000 2024 12,000 30,000 Required: Prepare a depreciation table for the following methods: a. Straight line b. Service hours c. Production method 472 Problem 27-2 (IAA) Austere Company purchased machinery for P570,000 on July 1, 2020. It is estimated that it will have a useful life of 10 years, residual value of P20,000, production of 200,000 units and working hours of 50,000. The entity used the machinery for 3,000 hours in 2020 and 5,000 hours in 2021. The machinery produced 18,000 units in 2020 and 22,000 units in 2021. Required: Compute depreciation for 2020 and 2021: a. Straight line b. Working hours…
es [The following information applies to the questions displayed On October 1, 2024, the Allegheny Corporation purchased equipment for $278,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 3 3. Units of production (units produced in 2024, 25,000; units produced in 2025, 40,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculate 2024 depreciation expense: Depreciation per unit rate Units produced in 2024 Depreciation in 2024 Calculate 2025 depreciation expense: Depreciation per unit rate Units produced in 2025 Depreciation in 2025