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Computer equipment was acquired at the beginning of the year at a cost of $76,900 that has an estimated residual value of $3,900 and an
Computer equipment was acquired at the beginning of the year at a cost of $76,900 that has an estimated residual value of $3,900 and an estimated useful life of 5 years. a. Determine the depreciable cost. b. Determine the straight-line rate. % c. Determine the annual straight-line depreciation. A machine costing $72,500 with a 5-year life and $4,400 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method. Year Depreciation Year 1 $ Year 2 $ Year 3 $ Year 4 $ Year 5 $ Computer equipment was acquired at the beginning of the year at a cost of $70,625 that has an estimated residual value of $4,200 and an estimated useful life of 5 years. a. Determine the depreciable cost. b. Determine the double-declining-balance rate. c. Determine the double-declining-balance depreciation for the first year. Solare Company acquired mineral rights for $110,000,000. The diamond deposit is estimated at 11,000,000 tons. During the current year, 2,930,000 tons were mined and sold. a. Determine the depletion rate. per ton b. Determine the amount of depletion expense for the current year. C. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $6,000. The cost of goods sold is $4,000. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment. If an amount box does not require an entry, leave it blank. April 1 April 1 June 10 Oct. 11 Oct. 11
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