Question

Calibri 12 - A General BI U DVD Dola 2 Wrap Text Merge & Center Painter a. Av $ % Font Alignment Numb fr M C с D E F G H K L Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $3,500,000 Assets acquired: Land $600.000 Building $500,000 Machinery $900,000 Patents 3500,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $50,000 Estimated useful life in years 20 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 1096 Estimated total production output in 200.000 Actual production in units was as 2019 40.000 2020 80.UUU 2021 20.000 The patents are amortized on a straight-line basis. They have no salvage valul Estimated useful life of patents in 30 On December 31, 2020, the value of the patents was estimated to be $100.000 Where applicable, the company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. quired nl. Entries Copyright be here to search BI

Answer 1

Brown Company
General Journal
Description	PR	Debit	Credit
Land		600000
Building		500000
Machinery		900000
Patents		500000
Cash			2500000
Purchase of assets for cash
Depriciation Expense		22500
Building			22500
Depriciation on Building = cost - salvage / No. of Years
500000-50000/40 * 2 (since Double declining method used)
22500
Depreciation Expense		162000
Machinery			162000
The depreciation on Machinery is calculated on basis of no. of units produced,hence it shall be calculated for 40000 units in 2019
=cost - Salvage Value / total units * actually produced units in 2019
= 900000 - (0.1 * 900000) / 200000 * 40000
162000
Depreciation Expense		16666.66667
Patents			16666.66667
Patents will be depriciated at Straight line basis In 30 years
= 500000 / 30
16666.66667
Decline in Value of Patents		383333.3333
Patents			383333.3333
The value of the patents has been reduced to 100000 and hence the balance has been written off
Written down value of machine in 2021,
Cost	900000
- Depriciation 2019	162000
-Depriciation 2020	324000	= 900000 - (0.1 * 900000) / 200000 * 80000
-Depriciation 2021	81000	= 900000 - (0.1 * 900000) / 200000 * 20000
WDV	333000
Trade in allowance received		288000
Loss on Tradein		45000
Mchinery A/c - Old			333000
New Machinery A/c		403200
Cash			115200
Trade in Allowance			288000
Depreciation		9878.4
New machinery a/c			9878.4
Depreciation will be charged at half the rate since the machinery is used for less than 180 days and half year rule applies
= Cost - salvage value / useful life
= (403200 - 8064 / 20) * 0.5
9878.4
New machinery a/c		100000
cash			100000
New part added to the machinery
Depreciation		14914.56
new machinery			14914.56
Depreciation will be charged at half the rate since the machinery is used for less than 180 days and half year rule applies
Salvage value of machine	8064
salvage value of part - 100000*10%	10000
Total Salvage Value	18064
Cost of the machine in 2023
Fair value in 2021	403200
less salvage value	8064
Depriciation in 2021 - half	9878.4
Depriciation in 2022 - full	19757
WDV of machine in 2023	365501
calculation of depriciation on new machine and additional part
wdv of machine	365501
cost of part	100000
total cost	465501
Less salvage	-18064		Add a comment Know the answer? Add Answer to: Calibri 12 - A General BI U DVD Dola 2 Wrap Text Merge & Center Painter... Your Answer: Post as a guest Your Name: What's your source? Earn Coins Coins can be redeemed for fabulous gifts. Log In Sign Up Post as anonymous Post Your Answer Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free. Similar Homework Help Questions Calibri 12 2 Wrap Text ру mat Painter 12 AA == 18-a.A- BIU Merge & Center... Calibri 12 2 Wrap Text ру mat Painter 12 AA == 18-a.A- BIU Merge & Center Td Font Alignment 21 B с о Е F G H к Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $3,500,000 Assets acquired: Land $800,000 Building $500,000 Machinery $900.000 Patents $500,000 The building is depreciated using the double-declining balance method. 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Information is as follows: Total cash paid $3.500.000 Assets acquired: Land S600.000 Building 5500.000 Machinery Ss00.000 Patents 3600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life in years The machinery is depreciated using the units-of-production method Other information is: Salvage value, percentage of cost 1096 Estimated total production output in 200.000 Actual production in units... here is the part thats missing A B D E F G H 1 2 3... here is the part thats missing A B D E F G H 1 2 3 4 5 Brown Company paid cash to purchase the assets of Coffee Company on January 1. 2019. Information is as follows: Total cash paid $3.500.000 Assets acquired: Land S800.000 Building $500,000 Machinery 5900.000 Patents 5500.000 6 7 8 9 10 11 12 13 14 15 16 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information... Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production... ADVERTISEMENT Free Homework Help App Download From Google Play Scan Your Homework to Get Instant Free Answers Need Online Homework Help? Ask a Question Get Answers For Free Most questions answered within 3 hours. ADVERTISEMENT Share Your Knowledge Post an Article +5 Coins Post an Answer +5 Coins Post a Question with Answer +5 Coins Active Questions Where is the error in this code sequence? 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