Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information for the next 5 questions: On January 1, 2008, KA Company purchased equipment for $105,000. The estimated useful life of the

Use the following information for the next 5 questions:

On January 1, 2008, KA Company purchased equipment for $105,000. The estimated useful life of the equipment is 10 years, during which time it will be produce 100,000 units. Estimated residual value is $5,000. KAs fiscal year is January 1 to December 31.

46. If KA Company uses the straight-line method of depreciation, the net book value of the asset at the end of the second year will be:

47. If KA Company uses the units method of depreciation and produced 30,000 units in the first year, the depreciation expense for the first year will be:

48. If KA Company uses the double-declining-balance method of depreciation, the balance in accumulated depreciation at the end of the second year will be:

49. If KA Company uses the straightline method of depreciation and sold the equipment for $35,000 at the end of the eighth year, after recording depreciation expense, the company should recognize a:

a. $70,000 loss on the sale

b. $35,000 gain on the sale

c. $10,000 gain on the sale

d. $10,000 loss on the sale

e.None of the above.

50. Assume KA Company purchased the equipment on July 1, 2008. What is the net book value of the equipment on December 31, 2010, after adjusting entries, if KA Company uses the straight-line method of depreciation?

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Kermit D. Larson, Paul B. W. Miller

5th Edition

0256091935, 978-0256091939

More Books

Students also viewed these Accounting questions

Question

Contact person at the organization

Answered: 1 week ago