Question
Question 1.) On July 1, 2020, Soprano Company purchased 10 computers with an invoice price of $50,000. Other costs incurred were sales tax $2,100, Freight
Question 1.) On July 1, 2020, Soprano Company purchased 10 computers with an invoice price of $50,000. Other costs incurred were sales tax $2,100, Freight $300, installation of $2,300, testing of $300, and prepaid insurance to cover the computers; $3,600. The computers are estimated to have a 5-year life and $5,000 salvage value.
Instructions:
- Find the cost of new computers.
-
What is depreciation for 2020 and 2021 if the company uses the double-declining balance method?: 2020 Depreciation?:
2021 Depreciation?:
Question 2.) A company purchased factory equipment for $700,000 on November 1, 2020. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be (Round to whole dollars if necessary)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started