Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamical Corporate Finance

Authors: Umberto Sagliaschi, Roberto Savona

1st Edition

3030778525, 9783030778521

More Books

Students also viewed these Accounting questions