This problem continues the Canyon Canoe Company situation from Chapter F:8.
Amber and Zack Wilson are continuing to review business practices. Currently, they are reviewing the company’s property, plant, and equipment and have gathered the following information

Requirements

 1. Calculate the amount of monthly depreciation expense for the computer and office furniture for 2025.
2. For each asset, determine the book value as of December 31, 2024. Then, calculate the depreciation expense for the first six months of 2025 and the book value as of June 30, 2025.
3. Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2025

Transcribed Image Text:

Asset Canoes Land Building Canoes Computer Office Furniture Acquisition Date Nov. 3, 2024 Dec. 1, 2024 Dec. 1, 2024 Dec. 2, 2024 Mar. 2, 2025 Mar. 3, 2025 Estimated Monthly Estimated Residual Depreciation Depreciation Life Value Method* Expense $0 $ 100 Cost $4,800 4 years 85,000 35,000 7,200 3,600 3,000 5 years 4 years 3 years 5 years 5,000 0 300 600 SL n/a SL SL DDB SL 500 150