Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz fast Question one: (20 marks) On, April 1, 2018, S. Products Co. purchased new machinery for $450,000. The machinery has an estimated useful life

plz fast image text in transcribed
Question one: (20 marks) On, April 1, 2018, S. Products Co. purchased new machinery for $450,000. The machinery has an estimated useful life of eight years and 15,000 salvage value. The company computed the depreciation by the double declining method In 31/03/2020 the company decided to exchange its machinery with new one, in that date the old machine fair market value estimated to$ 270,000. The company will pay $150,000 and the old machine to get the new one (no-commercial substances). The new machine will depreciate on sum-of-the-years-digits method with estimated 13000 salvage value and four years estimated useful life. In 1/1/2021 the company decided to change straight line method with change for useful life from four years to five years. Required: Journalize all entries on 31/12/ 2018,31/12/2019,31/03/2020. 31/12/2020 and 31/12/2021

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

Farmers Irs Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304134237, 978-1304134233

More Books

Students also viewed these Accounting questions