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Please answer the following: Partial - year depreciation Equipment acquired at a cost of $ 1 0 5 , 0 0 0 has an estimated
Please answer the following: Partialyear depreciation
Equipment acquired at a cost of $ has an estimated residual value of $ and an estimated useful life of
years. It was placed into service on May of the current fiscal year, which ends on December
a Determine the depreciation for the current fiscal year and for the following fiscal year by the straightline method.
b Determine the depreciation for the current fiscal year and for the following fiscal year by the doubledeclining
balance method.
Depreciation
Entries for sale of fixed asset
Equipment acquired on January at a cost of $ has an estimated useful life of years, has an estimated
residual value of $ and is depreciated by the straightline method,
a What was the book value of the equipment at the end of the fifth year, December
b Assuming that the equipment was sold on April of the sixth year for $
Journalize the entry to record depreciation for the months until the sale date. If an amount box does not require an
entry, leave it blank.
Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Disposal of fixed asset
Equipment acquired on January at a cost of $ has an estimated useful life of years and an estimated
residual value of $
a What was the annual amount of depreciation for Years using the straightline method of depreciation?
b What was the book value of the equipment on January of Year
$
c Assuming that the equipment was sold on January of Year for $ journalize the entry to record the sale.
If an amount box does not require an entry, leave it blank.
January
d Assuming that the equipment was sold on January of Year for $ instead of $ journalize the
entry to record the sale. If an amount box does not require an entry, leave it blank.
January
:
Depletion entries
Alaska Mining Co acquired mineral rights for $ The mineral deposit is estimated at tons. During
the current year, tons were mined and sold.
a Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal
places.
b Journalize the adjusting entry on December to recognize the depletion expense. If an amount box does not
require an entry, leave it blank.
December Amortization entries
Kleen Company acquired patent rights on January of Year for $ The patent has a useful life equal to its
legal life of years. On January of Year Kleen successfully defended the patent in a lawsuit at a cost of $
a Determine the patent amortization expense for Year ended December
$
b Journalize the adjusting entry on December of Year to recognize the amortization. If an amount box does not
require an entry, leave it blank.
Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January for $ The equipment was expected to have a
useful life of years, or operating hours, and a residual value of $ The equipment was used for
hours during Year hours in Year and hours in Year
Required:
Determine the amount of depreciation expense for the years ending December by a the straightline
method, b the unitsofactivity method, and c the doubledecliningbalance method. Also determine the total
depreciation expense for the years by each method. Do not round intermediate calculations when determining
the depreciation rate. Round the final answers for each year to the nearest whole dollar.
Depreciation Expense
What method yields the highest depreciation expense for Year
What method yields the most depreciation over the year life of the equipment?
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