A machine with an eight year estimated useful life and an estimated 10% residual value was acquired on January 1,2018.   On December 31,2021, the balance of the accumulated depreciation on this asset, using the sum of the year's digits method would be     a. Original cost x 5/36 b. (Originalcost x 90%) x 5/36 c. Original cost x 26/36 d. (Original cost x 90%) x 26/36

Q: A machine with an eight year estimated useful life and an estimated 10% residual value was acquired…

A: Total sum of estimated useful life = 1 + 2 + 3 + 4+5+6+7+8 = 36 years Total sum of 2 years upto…

Q: ROSE Company purchased machinery on January 1, 2020. It has an estimated useful life of four years…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated…

A:

Q: A plant asset was purchased on May 1, 2021. The asset had a cost of $54,000, a salvage value of…

A: Formula: Straight line method = ( Cost of Asset - Salvage value ) / Useful life

Q: The Clarke Co. acquired a machine on May 1, 2021, at a cost of $60,000. The machine is expected to…

A: Date of acquiring: May 1, 2021 Cost: $ 60,000 Life: 10 years Residual Value: $5,000 Life (in units):…

Q: On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $225,000. At the…

A: Depreciation is wear and tear of assets. When assets is sold out , we need to find out the book…

Q: On January 1, 2021, PANCHITAS CAFÉ purchased equipment for $180,000. The equipment had an estimated…

A: SLM depreciation = (cost - salvage value)/life = (180000-40000)/10 = 14000 SLM rate = SLM…

Q: Steele Company purchased on January 1, 2020, a new machine for $2,100,000. The new machine has an…

A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9 = 45 years

Q: On January 1, 2015, Similar Corp purchased machinery for $112,200 that was expected to have a useful…

A: Prior Depreciation per annum = ($112200 - $8400) / 8 years = $12975 Revised depreciation per annum…

Q: Grumpy Inc purchased a machine on January 1, 2021, at a cost of $120,000. The machine was originally…

A: Depreciation is the reduction in the value of an asset due to normal wear and tear, passage of time,…

Q: On August,1,2016, Srini Construction purchased special-purpose equipment at a cost of $1,000,000.…

A: Depreciation under SLM method =(original cost - residual value) /Useful life

Q: On January 1, 2018, Shopee Company purchased an equipment with an estimated useful life of 8 years.…

A: Solution: Under sum of years digit method of depreciation, depreciation is expected to be higher in…

Q: On January 1, 2017, Global Manufacturing purchased a machine for $540,000 that it expected to have a…

A: disposal of assets:- It  involves eliminating assets from accounting records. Loss on sale. Debit…

Q: On January 1, 2018, Sanderson, Inc. acquired a machine for $1,200,000. The estimated useful life of…

A: Investment in machine = $1,200,000 Life of equipment = 5 years Salvage value = $72,000 Number of…

Q: The following data relate to the acquisition of an equipment owned by GRACE Corporation.…

A: Solution:- Calculation  of the the depreciation expense for the year 2023 using sum of the years…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $70,100. The…

A: Introduction: A journal entry is being used to record a corporate transaction in the accounting…

Q: On April 20, 2020, Maskell Co. purchased an asset costing $66,000 with a useful life of nine years…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the…

A: Annual depreciation = (Cost of truck - Residual value) / Life of the truck = ($126,000 - $30,000) /…

Q: On January 1, 20x1, DOC WILLIE Company acquired equipment from Catanduanes Factory Supplies with an…

A: Note: As per the norms of Bartleby, in case of many independent questions, 1 question can be…

Q: On January 1, 2020, the Metlock, Inc. ledger shows Equipment $38,000 and Accumulated…

A: Annual Depreciation as per Straight-line method = (Cost - Salvage value)/Useful life To find the…

Q: On June 30, 2023, Flakes reported the following information: Equipment at cost 30,000,000…

A: Working notes :-                       Depreciation is demunition in the value of…

Q: On December 31, 2020, Flounder Inc. has a machine with a book value of $1,071,600. The original cost…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: 1. The company computes depreciation to the nearest day. (Use 12 months of 30 days each.) 2. The…

A: Since there are multi sub-parts, we will solve first three for you. To get the remaining questions…

Q: On January 2, 2021, Jatson Corporation acquired a new machine with an estimated useful life of five…

A: Answer: Working: Part 1:

Q: On January 2, 2021, Jatson Corporation acquired a new machine with an estimated useful life of five…

A: It is mentioned in the question, switch to the straight-line method when the depreciation expense…

Q: n September 30, 2021, Shamille Company purchased machinery for P7,600,000. Residual value was…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: On January 2, 2021, Jatson Corporation acquired a new machine with an estimated useful life of five…

A: Answer a-1: Depreciation as per Straight-line method: Rate=1Useful life=15=20% Asset…

Q: On January 1, 2018, Jane Company purchased an equipment with an estimated useful life of 8 years.…

A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…

Q: Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s…

A: Depreciation per machine hour under Units of production method = (Cost-salvage value)/ total number…

Q: A machine with an eight year estimated useful life and an estimated 10% residual value was acquired…

A: Total sum of estimated useful life = 1 + 2 + 3 + 4+5+6+7+8 = 36 years Total sum of 4 years upto…

Q: The following data relate to the acquisition of an equipment owned by ACE Corporation. Acquisition…

A: Because an asset is likely to experience wear and tear over time, depreciation must be provided.…

Q: 9) Big Valley Ltd. purchased machinery on January 2, 2019, at a total cost of $85,000. The machinery…

A: Depreciation is the method which assigns the cost of the physical asset to its expected life of the…

Q: Rehearsal Corporation purchased equipment on Jan 1, 2020, for $250,000. The equipment was expected…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: AITH Manufacturing Inc. purchased a new machine on January 2, 2019, that was built to perform one…

A: Depreciation is referred to as a decrease in the book value of the fixed asset. It is a non-cash…

Q: On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations.…

A: Depreciation rate as per double declining balance method = (100/useful life) ×2

Q: On January 1, 2018, KingKong Corp. purchased an equipment with an estimated useful life of 8 years.…

A: Salvage Value P2,000 Useful Life (in years) 8 Sum of the year (1+2+3+4+5+6+7+8) 36…

Q: Amicable Company purchased a machine at a cost of P635,000 on January 1, 2019.  It was estimated…

A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…

Q: Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer was…

A: Depreciation is a charge against profit. It indicates a diminution in service potential. It is not…

Q: Wardell Company purchased a mainframe on January 1, 2019, at a cost of $40,000. The computer was…

A: Answer: Cost of computer = $40,000 Estimated useful life = 5 years Estimated residual value = $4,000…

Q: On December 31, 2020, Tritt Inc. has a machine with a book value of $940,000. The original cost and…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year…

A: Depreciation Expense - Depreciation Expense is the expense charged in the Income Statement for the…

Q: On January 1, 2019, the Morgantown Company ledger shows Equipment $32,000 and Accumulated…

A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…

Q: Charlotte Corporation purchased a machine that had an original cost of $150,000 and an estimated…

A: *As per the bartleby guidelines, in case of interlinked question answer first 3 only    Given that:…

Q: On December 31, 2021, Joy Company reported the following information: Equipment 6,250,000…

A: 1. Current Carrying Amount of Equipment: Carrying Amount = Cost - Accumulated Depreciation…

Q: On January 1, 2017, Mogul company acquired equipment to be used in the manufacturing operations. The…

A: Sum of 5 years = 1+2+3+4+5 = 15 years Sum of 3 years i.e 2017 to 2019 = 5+4+3 = 12

Q: ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is…

A: Depreciation is charged on assets. It is a non-cash expense. There are several methods to charge…

Q: Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s…

A: Solution: Introduction: Depreciation means a reduction in the value of an asset due to passage of…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $70,100. The…

A: Introduction: A journal entry is used to record a company that will focus on a company's accounting…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.