Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $47,040. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year for $532,597, determine the gain or loss on the sale of the equipment. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for the exact wording of account titles. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for the exact wording of account titles. How does grading work? PAGE 1   JOURNAL ACCOUNTING EQUATION Score: 45/49     DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 ✔ ✔   ✔         2   ✔             3   ✔     ✔       4   ✔

Q: Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was…

A: Straight-Line Method: This technique of calculating depreciation and amortization, which is the…

Q: Nash Company purchases equipment on January 1, Year 1, at a cost of $480,000. The asset is expected…

A: Under double declining balance method, Depreciation is deducted at the straight line depreciation…

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A: Depreciation: It refers to a gradual reduction in the fixed asset’s value over its estimated useful…

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

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

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A: Under the Units of Output method of Depreciation, the depreciation is charged on the basis of actual…

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A:

Q: Equipment was acquired at the beginning of the year at a cost of $76,620. The equipment was…

A: Depreciation expense per year = (Cost of the equipment - Residual value) / estimated useful life…

Q: Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was…

A: a. Depreciation expense for the first year = (Cost of the assets - salvage value)/ Life of the…

Q: Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was…

A: Double-declining-balance method: It is an accelerated method of depreciation under which the…

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A: Depreciation is charged on the depreciable fixed assets based on their useful life. Salvage value is…

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A: 1. Depreciation under Straight Line Method=Cost-Salvage value/Expected Useful life    Depreciation…

Q: Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was…

A: DDB is the method that counts as an expense more quickly when compared to SLM that uses same amount…

Q: Perdue Company purchased equipment on April 1 for $59,940. The equipment was expected to have a…

A: (a) Following are the calculation of depreciation expense for Year 1, Year 2, Year 3, and Year 4 by…

Q: Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Computer equipment was acquired at the beginning of the year at a cost of $30,625 hat has an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: An equipment was purchased for $30,000. It has a useful life of 5 years, and a residual value of…

A: Depreciation refers to the noncash expense which is levied on fixed assets due to wear and tear…

Q: double-declining-balance method

A: Double declining balance method refers to the accelerated form of depreciation which implies that…

Q: Equipment acquired on January 9, 20Y3, at a cost of $709,000, has an estimated useful life of 19…

A: Annual depreciation = (Cost of equipment - estimated residual value) / estimated useful life  =…

Q: Computer equipment was acquired at the beginning of the year at a cost of $48,125 that has an…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: A storage tank acquired at the beginning of the fiscal year at a cost of $61,000 has an estimated…

A: Formulas: Depreciation = ( Cost of asset - Salvage value) / Life of the asset

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A: a. Annual depreciation = (cost of the assets - residual value) / life of the assets =…

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

Q: Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip- ment was…

A: Three methods of depreciation are:Straight-line method: Under the straight-line method of…

Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip-ment was…

A: 1. a. Compute the depreciation using straight-line method as follows: The depreciation under this…

Q: Equipment was acquired at the beginning of the year at a cost of $465,000. The equipment was…

A: a. Calculate the depreciation expense for the first year under straight line method.

Q: Oriole Company purchases equipment on January 1, Year 1, at a cost of $588,000. The asset is…

A: Formula: Straight line depreciation expense=Cost-Salvage valueService life

Q: Perdue Company purchased equipment on April 1 for $48,870, The equipment was expected to have a…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/3 years) x 2 =…

Q: Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was…

A: a. Compute the depreciation for the first year: Cost of the Equipment $612,500 Less: Residual…

Q: Equipment was acquired at the beginning of the year at a cost of $79,680. The equipment was…

A: Depreciation is a reduction of value of asset over a period of time due to wear and tear,…

Q: Equipment was acquired at the beginning of the year at a cost of $280,000. The equip-ment was…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/16 years) x 2 =…

Q: Compute depreciation expense for the first three years using the double-declining-balance method

A: Depreciation can be defined as the amount of non-cash expense which reduces the book value of the…

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A: Solution:- a)Calculation of Depreciation using Straight line method as follows under:- Formula:-…

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

Q: Equipment was acquired at the beginning of the year at a cost of $662,500. The equipment was…

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

Q: Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Equipment was acquired at the beginning of the year at a cost of $550,000. The equipment was…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Equipment was acquired at the beginning of the year at a cost of $30,000. The equipment was…

A: Depreciation rate under double declining balance method = 2 / Useful life = 2 / 10 years = 20%

Q: Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was…

A: Cost of equipment = $ 575000 Estimated residual value = $ 49295 Estimated useful Life = 9 years

Q: Computer equipment was acquired at the beginning of the year at a cost of $60,093 that has an…

A: Formulas: Depreciation = (Cost of asset - residual value) / Life of the asset

Q: Perdue Company purchased equipment on April 1 for $23,490. The equipment was expected to have a…

A: Depreciation may be defined as the decrease in the value of assets due to regular use or time etc.

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A: The following calculations are done to evaluate the depreciation expense incurred for the 2nd year…

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.