Situation 1. Arnold Industries purchased office furniture on June 3, 19X4, for ($ 2,800) cash. Lisa Arnold
Question:
Situation 1. Arnold Industries purchased office furniture on June 3, 19X4, for \(\$ 2,800\) cash. Lisa Arnold expects it to remain useful for six years and to have a residual value of \(\$ 400\). Arnold uses the straight-line depreciation method. Record Arnold's depreciation on the furniture for the year ended December 31, 19X4.
Situation 2. Christie Company purchased equipment on October \(19,19 \mathrm{X} 2\), for \(\$ 16,500\), signing a note payable for that amount. Christie estimated that this equipment will be useful for three years and have a residual value of \(\$ 1,500\). Assuming Christie uses double-declining-balance depreciation, record Christie's depreciation on the machine for the year ended December 31, \(19 \mathrm{X} 2\).
Step by Step Answer:
Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.