On April 1, 2023, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to
Question:
On April 1, 2023, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to last five years and have a residual value of $12,500.
Required
Calculate depreciation expense for 2023 and 2024 to the nearest month, using
(a) The straight-line method,
(b) The double-declining-balance method. The company has a December 31 year-end.
Step by Step Answer:
Year 2023 StraightLine 1250001250...View the full answer
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
On April 1, 2014, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to last five years and has a residual value of $12,500. Required Calculate depreciation expense for 2014...
-
On April 1, 2020, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to last five years and have a residual value of $12,500. Required Calculate depreciation expense for...
-
On April 1, 2012, Cyclones Backhoe Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense for both 2012...
-
A heat engine cycle is executed with ammonia in the saturation dome. The pressure of ammonia is 1.5 MPa during heat addition and 0.6 MPa during heat rejection. What is the highest possible thermal...
-
Consider the practice of making facilitating payments to foreign officials and others as part of doing business abroad in the context of the following statement: International companies are...
-
One of the worlds most common objects is a wrist watch. Discuss how each of the following terms and concepts applies to the notion of a watch: object, attributes, behaviors, class, inheritance...
-
What is the main difference between environmental accounting and ecological accounting?
-
In the early 1970s a widely publicized list of the "Nifty Fifty" stocks was drawn up. This list, which included Avon Products, Polaroid, Coca-Cola, McDonald's, Walt Disney, American Express, and...
-
Name: Assign 4.4 Graphing MATH 2413 For the problems below, take the values of A and B as the last two digits of your Blinn ID that are not 0 or 1. A=5 B=8 1. Given the function f(x)=84x-5Ax* -20 Ax...
-
Class Act Catering Company had a deluxe, portable barbecue with a book value of $7,000 at its December 31, 2022, year-end. The barbecue had an estimated remaining useful life of five years and a $200...
-
Every Where Development Co. showed the following selected PPE balances on January 31, 2023: 1 Remaining estimated useful life is 40,000 kilometres with a residual value of $9,800; depreciated using...
-
At a concert on campus, 20% of people purchase Zone A tickets, for $47 each. The other 80% of people purchase Zone B tickets, for $38 each. If five people are selected at random, what is the variance...
-
The risk-free return on a government bond is 0.02. A risky asset is available with a return of 0.10 and a standard deviation of 0.04. a) Assume you are optimally willing to accept a standard...
-
OPERATING Income Margin = EBT / Sales Please do these calculations based on the income statement from years 2017-2022 please find financial statement for Bunge here...
-
A hemisphere and a cone have circular bases of equal circumference and have been connected at their bases, as shown in the figure. The diameter of the base of the hemisphere is 6 centimeters (cm) and...
-
RCF to Debt = retained cash flow / debt Please used Bunge's financial statements from years 2017 to 2021. find financial statement for Bunge here...
-
Consider the data in the accompanying table. (a) Find X-Y4. (b) Compute EXY. X 1.4 4.1 -3.8 -6.0 2.2 Y 5 -2 1 -10- 2
-
What amount today is economically equivalent to $8000 paid 18 months from now, if money is worth 5% compounded monthly?
-
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
-
Amuse Me Co. buys and sells new and used equipment for amusement parks, carnivals, parks, and zoos. Prepare general journal entries to record the following perpetual system merchandising transactions...
-
The following is selected simplified information from Organic Caterings balance sheet as at December 31, 2023 and December 31, 2024. You, business analyst at Organic Catering, have been asked to...
-
Colombia Textiles began operations several years ago. Its post-closing trial balance at December 31, 2023, is shown below (with accounts listed in alphabetical order): 1 Assume all accounts have a...
-
Davis plans to save money to take a two-week cruise on December 31, 2028. On January 1, 2025, Davis plans to invest money in an investment fund paying 10% interest to accumulate $16,000. How much...
-
What is the rationale for the Supreme Court's holding that secret agents do not come under the protection of the Fourth Amendment? What are the issues in the following case? Police officers execute a...
-
We obtain monthly data on retail sales of supermarket and grocery stores in Victoria measured in millions of Australian dollars from January 2010 to January 2021 and the data are plotted in the...
Study smarter with the SolutionInn App