Question
1.) On March 1, 2020, Jefferson Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight costs, $2,100; installation wiring
1.) On March 1, 2020, Jefferson Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight costs, $2,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment during the life of the asset, $500; fire insurance policy covering equipment for three years, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life.
(A) Find the Cost of the Equipment.
2.) On March 1, 2020, Soprano Co. purchased factory equipment with an invoice price of $90,000. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life.
(B) What is depreciation for 2020 using the double-declining balance method? _______________
What is the book value? ___________ Show all work.
3.) On March 1, 2020, Jefferson Company purchased factory equipment with an invoice price of $90,000. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life. Using your calculations from Question #2, calculate depreciation using the double-declining balance method for:
2021 Depreciation _______________________
2021 Book Value ________________________
4.) Ronald Company purchased equipment on May 1, 2020, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Show all Calculations:
(1) The company uses straight-line depreciation. ___________________
What is depreciation for 2020? ___________________
What is the Accumulated Depreciation in the year 2022? __________________
5.) Ronald Company purchased equipment on May 1, 2020, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
The company uses the units-of-activity depreciation method. If 16,000 units are produced in 2020 and 24,000 units are produced in 2021, answer the following; show all work.
2020 Depreciation __________________
2021 Depreciation __________________
12/31/2021 Book Value ____________________
6.) Ronald Company purchased equipment on May 1, 2020 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. The company uses the double declining balance method of depreciation; answer the following:
2020 Depreciation ______________
2021 Depreciation ______________
2021 Accumulated Depreciation ________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started