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Hello, I am really needing help with this assignment. The tutor that had picked it up days ago, had an emergency and now can not
Hello, I am really needing help with this assignment. The tutor that had picked it up days ago, had an emergency and now can not do it.
Thank you for your help in advance!
E11-4 (Depreciation ComputationsFive Methods) Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2014. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2015, Seceda Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2015 under each of the following methods. (Round to the nearest dollar.) (a) Straight-line. (b) Units-of-output.) (c) Working hours (d) Sum-of-the-years'-digits (e) Declining-balance (use 20% as the annual rate) E11-9 (Composite Depreciation) Presented below is information related to LeBron James Manufacturing Corporation. Asset A B C D E Cost $40,500 $33,600 $36,000 $19,000 $23,500 Estimated Salvage $5,500 $4,800 $3,600 $1,500 $2,500 Estimated Life (in years) 10 9 9 7 6 Instructions (a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (b) Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (c) Prepare the entry to record the sale of asset D for cash of $4,800. It was used for 6 years, and depreciation was entered under the composite method. E11-11 (DepreciationChange in Estimate) Machinery purchased for $60,000 by Tom Brady Co. in 4 2010 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation. Instructions (a) Prepare the entry to correct the prior years' depreciation, if necessary. (b) Prepare the entry to record depreciation for 2015. E11-17 (Impairment) Assume the same information as E11-16, except that Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000. Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014. (b) Prepare the journal entry (if any) to record depreciation expense for 2015. (c) The asset was not sold by December 31, 2015. The fair value of the equipment on that date is $5,300,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $20,000Step by Step Solution
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