A Solve the following problems Vermont Industries, a clothing mail order retailer, purchased a new industrial sewing machine for $156,000 This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be $9,000 What is the yearly depreciation expense under the straight line method Perfect Pastries buys a display case for her bakery business on January 1, 2019 The case cost $36,000 and is expected to be used for ten years At the end of the ten years it is expected that the case can be sold for $4,000 Compute the depreciation expense for the third year (2021) using both straight line and double declining balance depreciation methods Kaitlin Block Publishing, a textbook publishing firm, purchased a new machine for $120,000 This machine is expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $9,000) How much will the first and second years depreciation expense be under the double declining balance method 4 Scheuller Company had machinery that had originally cost $246,000 The machinery was three years old and had been depreciated using the double declining balance method, over a five year useful life with a residual value of $18,000 Answer each of the following independent questions Required If the company sold the machinery for $105,000, prepare a journal entry to record the sale If the company sold the machinery for $48,000, prepare a journal entry to record the sale B Discuss the following 1 Di scuss the nature of, and the accounting for, intangible assets 2 Illustrate the balance sheet presentation of plant assets and intangible assets

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

A. Solve the following problems: Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000. This machine is expected to operate

A. Solve the following problems:

Vermont Industries, a clothing mail-order retailer, purchased a new industrial sewing machine for $156,000. This machine is expected to operate for 5 years after which it will be sold for salvage value estimated to be $9,000.

What is the yearly depreciation expense under the straight-line method?

Perfect Pastries buys a display case for her bakery business on January 1, 2019. The case cost $36,000 and is expected to be used for ten years. At the end of the ten years it is expected that the case can be sold for $4,000.

Compute the depreciation expense for the third year (2021) using both straight-line and double-declining-balance depreciation methods.

Kaitlin Block Publishing, a textbook publishing firm, purchased a new machine for $120,000. This machine is expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $9,000).

How much will the first and second years depreciation expense be under the double-declining-balance method?

4. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old and had been depreciated using the double-declining-balance method, over a five-year useful life with a residual value of $18,000.

Answer each of the following independent questions:

Required:

If the company sold the machinery for $105,000, prepare a journal entry to record the sale.
If the company sold the machinery for $48,000, prepare a journal entry to record the sale.

B. Discuss the following:

1. Discuss the nature of, and the accounting for, intangible assets.

2. Illustrate the balance sheet presentation of plant assets and intangible assets.