Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kaur Inc. purchased a $1,500 computer on January 1, 2015 with an expected service life of three years and a residual value of $150. Kaur

Kaur Inc. purchased a $1,500 computer on January 1, 2015 with an expected service life of three years and a residual value of $150. Kaur Inc. uses the double-declining balance depreciation method for this computer. Kaur Inc. closes its books yearly on December 31st.

Note: Please round depreciation expenses to whole numbers.

a. Calculate the depreciation expense for the computer for the first year (year ended Dec 31, 2015)

b. Calculate the depreciation expense for the computer for the third year (year ended Dec 31, 20217)

Question 2

a. On January 1, 2015, Kite Company purchases machinery at a cost of $430,000. The useful life is 6 years, and the salvage value is $10,000. Assuming straight-line depreciation, compute the book value of the machinery, after all entries are made, on December 31, 2016.

b. Assume that, on January 1, 2017, Kite Company decides to sell the machinery for $315,000 in cash. What would be the transaction for the sale of the machinery?

Balance Sheet

Income Statement

Cash

Asset

+

Noncash Assets

=

Liabil-

ities

+

Contrib. Capital

+

Earned

Capital

Rev-enues

Expen-

ses

=

Net

Income

+

=

+

+

=

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting For Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

6th Edition

1264100590, 9781264100590

More Books

Students also viewed these Accounting questions

Question

=+b) Which model do you prefer? Explain briefly. Section 18.4

Answered: 1 week ago

Question

What is one challenge in ensuring faimess in generative Al ?

Answered: 1 week ago