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ACC 2103- Revision Depreciation 1. AB Inc. purchase an asset $600,000 on Jan 1 2019. The asset has useful life of four years and salvage
ACC 2103- Revision Depreciation 1. AB Inc. purchase an asset $600,000 on Jan 1 2019. The asset has useful life of four years and salvage value $40,000. The Company used straight method of depreciation. Prepare depreciation schedule. 2. XY Inc. purchase an asset S600,000 on Jan 1 2019. The asset has useful life of four years and salvage value $40,000. The Company used double declining balance method of depreciation. Prepare depreciation schedule. 3. PQ Inc. purchased an equipment costing $ 175,000 with a 4- year useful life and an estimated AED 25,000 salvage value. It is assumed that the machine would produce 200,000 units during its life. Actual production was as follows: 2018 --- 25,000 units 2019 --- 75,000 units 2020 --- 62,500 units 2021 --- 37,500 units 4. ST Inc. purchased an equipment on Jan 1, 2016 costing S 40,000 with a five-year useful life and an estimated salvage value of AED 2,000. The Company uses straight method of depreciation. At the beginning of the third year, ST determines that the machine has four more years of remaining useful life, after which it will have an estimated $1,500 salvage value. Calculate the amount of depreciation for each of the final four years given the revised estimates. 5. HM Inc. purchased machine on Jan 1, 2018 costing $245,000, the sales tax is $5,000 with a five-year useful life with no estimated salvage value. The Company uses straight method of depreciation. On October 1, 2020, the HM sold the machine a. $120,000 cash. b. $80,000 cash Prepare journal entries to record depreciation on October 1, 2020 and disposal of asset for cases a and b above. Bank Reconciliation Statement (BRS) for
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