| You purchased a building, equipment and a truck for $700,000 cash. The building has an | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Determine the cost to be assigned to each asset and prepare the journal entry to make | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the
purchase. (I only need help with the table below, I attached the
info above in case you need it)
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Cost of equipment = $300000 x 7/8 = $262500
DDB Rate = 1/5 x100 x 2 = 40%
| Year | Beg Book Value | Depreciation | Acc Dep | End Book Value |
| 1 | $ 2,62,500 | $ 1,05,000 | $ 1,05,000 | $ 1,57,500 |
| 2 | $ 1,57,500 | $ 63,000 | $ 1,68,000 | $ 94,500 |
| 3 | $ 94,500 | $ 37,800 | $ 2,05,800 | $ 56,700 |
| 4 | $ 56,700 | $ 22,680 | $ 2,28,480 | $ 34,020 |
| 5 | $ 34,020 | $ 13,608 | $ 2,42,088 | $ 20,412 |
| 6 | $ 20,412 |
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal...
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 Determine the cost to be assigned to each asset and prepare the journal entry to make the purchase. JOURNAL ENTRY The building has a 20 year life expectancy and a $25,000 salvage value. It will be depreciated using the straight-line method. Assume at the end of the 8th year the building is...
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 Determine the cost to be assigned to each asset and prepare the journal entry to make the purchase. JOURNAL ENTRY The building has a 20 year life expectancy and a $25,000 salvage value. It will be depreciated using the straight-line method. Assume at the end of the 8th year the building is...
Building is 350,000, Equipment is 262,500, Truck, 87,500 and cash is 700,000 The equipment has a salvage value of $10,000, life expectancy of 5 years. Calculate depeciation for all years necessary using the double declining balace. What is the book value at the beginning of year 6? Depreciation Book-Value Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 It is planned that the delivery truck will be driven 200,000miles during its life time of 5 years. Mileage...
When calculating the depreciation for the truck, there is a $7,500 salvage value. You will need to depreciate at 40 cents per mile. You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 It is planned that the delivery truck will be driven 200,000miles during its life time of 5 years. Mileage is as follows: Year 1: 65,000 miles, Year 2: 79,500...
Equipment cost: 262,500 The equipment has a salvage value of $10,000, life expectancy of 5 years. Calculate depreciation for all years necessary using the double declining balance. What is the book value at the beginning of year 6? depreciation book-value year1 year2 year3 year4 year5 year6
On January 1, 2013, Powell Company purchased a building and equipment that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Equipment, 15-year estimated useful life, $600,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, Powell decided to change the total useful life of the building to 30 years. The equipment is depreciated using the straight-line method, but in 2018, the...
QUESTION 6 A manufacturing company has purchased three assets: Item Lathe Truck Building Initial cost $43,000 $25,000 $900,000 Book life 12 years 200,000 miles 50 years MACRS class 7 years 5 years 39 years Salvage value $3,000 $2,000 $100,000 Book depreciation DDB Unit production (UP) SL The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. Calculate the depreciation stated for each asset...
QUESTION 6 A manufacturing company has purchased three assets: Item Lathe Truck Building Initial cost $43,000 $25,000 $900,000 Book life 12 years 200,000 miles 50 years MACRS class 7 years 5 years 39 years Salvage value $3,000 $2,000 $100,000 Book depreciation DDB Unit production (UP) SL The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. Calculate the depreciation stated for each asset...
For the year 20X1, the Landmark Restaurant had sales of $800,000 and expenses of $700,000 excluding depreciation. The building is being leased and the only depreciable asset is equipment in the amount of $100,000. The equipment has a life of ten years with zero salvage value. Required: Calculate the earnings before taxes for 20X1 if: 1. The equipment is depreciated under straight-line depreciation 2. The equipment is depreciated under double-declining balance depreciation
For the year 20X1, the Landmark Restaurant had sales of $800,000 and expenses of $700,000 excluding depreciation. The building is being leased and the only depreciation asset is equipment in the amount of $100,000. The equipment has a life of ten years with zero salvage value. Require: Calculate the earnings before tax for 20X1 if: 1. The equipment is depreciated under straight-line depreciation 2. The equipment is depreciated under double-declining balance depreciation