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Please answer this question Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and puts into
Please answer this question
Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and puts into service a cargo ship costing $10,000,000. The expected useful life of the ship is 25 years, and the salvage value is $1,000,000. Enter your answers below in whole dollar amounts without a S sign. 1. Calculate the annual depreciation expense that Scrimshander must recognize on the cargo ship over the next 25 years. 2. Calculate the accumulated depreciation on the cargo ship as of December 31, 2019. 3. Calculate the net book value of the cargo ship as of December 31, 2019. 4. Calculate the net book value of the cargo ship as of December 31, 2041. 5. Assume that Scrimshander continues using this cargo ship throughout 2042. How much depreciation expense should Scrimshander recognize for that year? Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020, On that date, Cullumber disposes of this equipment 1. What is the net book value of the equipment on July 30, 2020? 2. True or false: Regardless of the value received for the equipment on July 30, 2020, Cullumber must remove its net book value from the accounting records by crediting Delivery equipment for $49,700 and debiting Accumulated Depreciation - Delivery equipment for $24,800. Enter Tor F. 3. Assume Cullumber scraps the equipment as having no value on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box. 4. Assume Cullumber sells the equipment for $37,200 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box. 5. Assume Cullumber sells the equipment for $18,000 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box Step by Step Solution
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