Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hello, I need help with this question!! thank you! 2 HW Problem 8.2 -On October 1. Trevor Company made a group purchase from a company

image text in transcribed

hello, I need help with this question!! thank you!

2 HW Problem 8.2 -On October 1". Trevor Company made a group purchase from a company going out of business. It paid $500,000 for the following items which were appraised at the following values: Building $350,000 Land 189,000 Land Improvements 70,000 Equipment 91.000 Total $700,000 a. Record the journal entry for the purchase on October 1" b. Calculate the amount of depreciation on the building for the first and second years using the double- declining balance method. Assume the building cost $250,000, a life of 40 years, and a salvage value of $20,000. Show your calculations. c. Calculate the amount of depreciation on the land improvements for the first and second years using the straight-line method and a 20 year life. Assume the land improvements cost $50,000 and have a salvage value of $4,000. Show your calculations. d. Calculate the amount of depreciation on the equipment for the first and second years using the units of production method. Assume the equipment cost $65,000, a life of 40,000 machine hours, and a salvage value of $5,000. The equipment was used 6,000 machine hours in the first year and 10,000 machine hours in the second year. Show your calculations

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

Maximizing Corporate Value Through Mergers And Acquisitions A Strategic Growth Guide

Authors: Patrick A. Gaughan

1st Edition

1118108744, 9781118108741

More Books

Students also viewed these Accounting questions

Question

What are the advantages of running experiments?

Answered: 1 week ago