Metagrobolize Ltd. purchases an equipment at cost of $100,000 on January 1, 2017. The useful age...

 

Transcribed Image Text:

Metagrobolize Ltd. purchases an equipment at cost of $100,000 on January 1, 2017. The useful age of this equipment is estimated to be 5 years. The residual value is estimated to be $5,000. Required: (a)Metagrobolize Ltd. uses double-declining-balance depreciation method. Prepare the depreciation schedule for this particular equipment. (5 marks) (b)On the end of 2018, Metagrobolize Ltd. changes its depreciation method on this particular equipment to straight-line method with a 6-year service life and no residual value. Calculate the new depreciation expense per year. Re-prepare the depreciation schedule for this particular equipment from 2019. (5 marks) (c)On December 31, 2020. Metagrobolize Ltd. sales this equipment for $21,000. Prepare the appropriate journal entry. (5 marks) Metagrobolize Ltd. purchases an equipment at cost of $100,000 on January 1, 2017. The useful age of this equipment is estimated to be 5 years. The residual value is estimated to be $5,000. Required: (a)Metagrobolize Ltd. uses double-declining-balance depreciation method. Prepare the depreciation schedule for this particular equipment. (5 marks) (b)On the end of 2018, Metagrobolize Ltd. changes its depreciation method on this particular equipment to straight-line method with a 6-year service life and no residual value. Calculate the new depreciation expense per year. Re-prepare the depreciation schedule for this particular equipment from 2019. (5 marks) (c)On December 31, 2020. Metagrobolize Ltd. sales this equipment for $21,000. Prepare the appropriate journal entry. (5 marks)

Answer rating: 100% (QA)

a To prepare the depreciation schedule using the doubledecliningbalance method we need to calculate ... View the full answer