BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipment was $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage value of $50,000. Use the Proportional Method or Elimination Method: You must show the computations to receive the score. Instructions: Answer the following: What is the revaluation surplus, if any? $ Computations: If BBB sells the asset at the end of the sixth year for $380,000 what is the gain/loss on the sale? $ Computations: Assume BBB hold the asset, at the end of the sixth year, its fair value is $425,000. What is the new revaluation surplus, if any? $ Computations:

BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipment was $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage value of $50,000. Use the Proportional Method or Elimination Method: You must show the computations to receive the score. Instructions: Answer the following: What is the revaluation surplus, if any? $ Computations: If BBB sells the asset at the end of the sixth year for $380,000 what is the gain/loss on the sale? $ Computations: Assume BBB hold the asset, at the end of the sixth year, its fair value is $425,000. What is the new revaluation surplus, if any? $ Computations:

Name: BBB Inc revalues an asset with a book value of $715,000 to its fair v
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipmentwas $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage valueof $50,000. U

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for book depreciation purposes. Newly acquired equipment has a first cost of $160,000 with a 3-year life and a $19,000 salvage value. Determine the depreciation charge and a book value for year 2. The depreciation charge is $ The book value for year 2 is determined to be $
Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Given this information, the depreciable base of the asset will be O $115,000. O $208,000. O $172,000. O $23,750. Submit Answer Save for Later
Warren Enterprises purchased a van for $21,510. The van has a salvage value of $3,800, and an estimated useful life of eight years. Warren plans to use the straight line method of depreciation. The accumulated depreciation at the end of year 3 would be $___ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
For the following machine, calculate depreciation using Double Diclining with a change to a fixed deduction if the acquisition cost is $50,000 and its estimated residual value is $10,000 with a useful life of 9 years. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Assume that Brown's Salvage Company paid $30,000 for equipment with a 10-year life and zero expected residual value. After using the equipment for four years, the company determines that the asset will remain useful for only three more years. Read the requirements. Requirement 1. Record depreciation expense on the equipment for year 5 by the straight-line method. First, select the formula to calculate the company's revised depreciation expense on the equipment for year 5. Then enter the amounts and calculate the depreciation for year 5. (Enter "0" for items with a zero value.) Date Record the depreciation on the equipment for year 5. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Requirement 2. What is accumulated depreciation at the end of year 5? The accumulated depreciation at the end of year 5 is $ = Debit Revised depreciation Credit
Sunland Company purchased a depreciable asset for $175900. The estimated salvage value is $13900, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the asset's depreciation base?
LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000in 10 years. The LLED company is trying to determine the best method of depreciation. Create atable and calculate the deprecation amount for each year using straight line, double decliningbalance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below thesalvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions.Which is the preferred method of depreciation for LLED?
Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be depreciated using the Matheson formula, estimated life is seven years with a salvage value of P81 000.00. After five years of use, the mixer is overhauled at a cost of P250,000.00, which results in the extension of its useful life by another three years. Assuming the salvage value did not change; find the depreciation charge and (Ans. P60,240.1) the book value for the eighth year. (Ans. P155,756.89)
The Black Limo Company (BLC) purchased a limo on January 1 of Year 1. The limo cost $48,000. It had an expected useful life of 4 years and an $8,000 salvage value. Assume BLC uses straight-line depreciation. At the beginning of Year 3, the limo is sold for $30,000 cash. As a result of the asset disposal BLC will recognize a ______ activities.
LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000 in 10 years. The LLED company is trying to determine the best method of depreciation. Create a table and calculate the deprecation amount for each year using straight line, double declining balance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below the salvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions. Which is the preferred method of depreciation for LLED?
The Masters Corporation purchased a piece of machinery for $300,000. The expected useful life (EUL) of the machine is 10 years. Machinery of this type normally has a salvage value of approximately 17 percent of the purchase price (use $50,000 for salvage value in this case.) Using the accounting/finance functions in Excel, complete the depreciation worksheet in Exercise11.xls in the following steps: 1. Use the following three methods to compute the depreciation in columns B, C, and D: (1) double- declining balance, (2) straight-line, and (3) sum-of-the-years’ digits. Columns F, G, and H should show the book value of each method for the 10 periods (10 years). Formulas should be used in the empty cells so that a change in the cost, salvage value, or expected useful life of the machinery automatically updates the worksheet. 2. PDF page 1: Print cells A8:H20 into one page with proper format. 3. PDF page 2: Print cell formulas in Cells A15:H15. You may edit the cell…
A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation charges amounted to $5000. The declared salvage value was $25,000; useful life of the machine was 12 years. At the end of Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $90,000. Compute the book value of the machine at end of Year 4 and determine the loss or gain of depreciation on the sale using: a. Straight-Line Methodb. Sinking fund at 8%c. Double Declining Balance Methodd. Sum-of-the-Years-Digits Method