Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciationbuildings $60,200,000 Accumulated depreciationequipment 52,000,000 Buildings 97,200,000 Equipment 150,000,000 Land
At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts:
Accumulated depreciationbuildings | $60,200,000 | |
Accumulated depreciationequipment | 52,000,000 | |
Buildings | 97,200,000 | |
Equipment | 150,000,000 | |
Land | 20,000,000 |
The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred:
Apr. 1 | Purchased land for $4.00 million. Paid $1.000 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. | |
May 1 | Sold equipment for $200,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2014. | |
June 1 | Sold land for $3.60 million. Received $600,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. | |
July 1 | Purchased equipment for $2.00 million cash. | |
Dec. 31 | Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received. |
How to find the accumulated depreciation of equipment for december 31
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