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The following data relate to the Plant Assets account of ABC Con at December 31, 2017 Plant Assets Original cost Date of purchased Useful life

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The following data relate to the Plant Assets account of ABC Con at December 31, 2017 Plant Assets Original cost Date of purchased Useful life Residual value 15,000 1/1/2015 1,500 4,050 ABC Company computes depreciation and amortization expense to the nearest whole month. 9.500 1/1/2014 15,000 hours 500 13,950 1/1/2017 ars 870 Double-declining-balance 2,790 ciation method Straight-line Activit Accumulated ciation 4,620 TAF0080 During 2018, ABC engaged in the following transactions: an Purchased the plant asset D for 90,000, paying 10,000 down and agreeing to pay the balance in four equal installments of 20,000 payable each December 31 beginning in 2018. An assumed interest rate of 10% is implicit in the purchase price. The plant asset D have an estimated life of 15 years (straight-line method) and a residual value of 1200. Mar. The plant asset A was sold for 11,000. May 31 Purchased plant asset E and plant asset F for 10,120. The supplier reduced the price because of the joint purchase. If purchased separately, the plant asset E would have cost 7,700 and the plant asset F 3,300. Additionally, delivery costs paid by ABC were 300. The plant asset E have an estimated life of 5 years (straight-line method) and a residual value of 250. The plant asset F has an estimated life of 10 years (straight-line method) and a residual value of 500 Oct. 20 Paid for an ordinary repairs 200. Dec. 31 Paid for the plant asset D 20,000. Instructions Prepare journal entries to record the preceding events in 2018, as well as the year-end recording of depreciation expense. During 2018, plant asset B was used 1980 hours. a) b) Prepare an Accumulated Depreciation account, enter the beginning balance, post the c Compute carrying amount of plant assets. journal entries from Instruction a, and compute the ending balance

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