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- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
- During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.Muscat LLC purchased a machine on 1st January,2019 for OMR 125,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 175,000 and on 31st December, 2020 was OMR 250,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting. a. What is the amount of Depreciation Adjustment? b. What is the amount of Additional Depreciation? c. What is the amount of Back Log Depreciation?At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.4 million. $10.4 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $2.4 million residual value. Assume that 2019 depreciation was incorrectly recorded as $32,000. This error was discovered in 2021. Required1. Record the journal entry needed in 2021 to correct the error.2. What is depreciation on the building for 2021 assuming no change in estimate of useful life or residual value?
- Tammy Company purchased a boring machine on January 12018 for P8, 100 000. The useful life of the machine is estimated a years with a residual value at the end of this period of P600,000 During the useful life, the expected units of production are 12,000 units in 2018, 7,000 units in 2019 and 6,000 units in 2020 What is the depreciation expense for 2019 using the appropriate depreciation method ? Select the correct response 2.100.000 1.800.000 3,600 000 2.268,000Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $445.000 in January 2019. The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $87,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2019, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2021, after the third year of the equipment's life. Depreciation expense Net book value b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2021, the third year of the equipment's life. Double-declining rate Depreciation expenseNn.57. Subject :- Account Company purchased a machine for $9,800 on January 1, 2019. The machine has been depreciated using the straight-line method assuming it has a five-year life with a $1,400 residual value. Taylor sold the machine on January 1, 2021, for $7,600. What is the book value of the machine on December 31, 2020? A.$ 2 comma 100 $2,100 B.$ 6 comma 440 $6,440 C.$ 8 comma 400 $8,400 D.$ 9 comma 800 $9,800
- Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life, the depreciation expense under unit of activity method for 2020, assuming machine usage was 1700 hours O a. 20400$ O b. 17000S O c. 8500$ O d. 1530OSOn January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2,200 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $6.200. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect? Multiple Cholce The December 31, 2020 book value Is$25.600. The annual depreclation expense Is $6.400. The December 31, 2019 book value Is $38.200. The December 31, 2021 accumulated depreclation balance is $19.200,Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.Required: Calculate the depreciation expense for each year of the asset's life using A. Straight-line depreciation. B. Double-declining-balance depreciation. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method.