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Yorkton Company purchased for $415,000 equipment having an estimated useful life of 10 years with an estimated residual value of $25,000. Depreciation is calculated to
Yorkton Company purchased for $415,000 equipment having an estimated useful life of 10 years with an estimated residual value of $25,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required Complete the following schedules (round calculations to the nearest whole dollar): 1. Assuming the purchase was made on January 1, 2020. 2. Assuming the purchase was made on July 1, 2020, 2020 2021 2022 A. Double declining balance method Equipment.. Less: Accumulated depreciation. Year-end book value... Depreciation expense for the year........ B. Straight-line method Equipment Less: Accumulated depreciation. Year-end book value... Depreciation expense for the year............. Big Sky Farms Partial Balance Sheet April 30, 2020 Property, plant, and equipment: Land $730,000 Building! $742.000 Less: Accumulated depreciation.... 583,000 159,000 Equipment? 670,000 Less: Accumulated depreciation. 284,080 385,920 Total property, plant, and equipment.......... $1.274,920 The building was purchased on May 3, 2009, and is depreciated to the nearest whole month using the straightline method. Depreciation is based on a 14-year life, after which it will be demolished and replaced with a new one The equipment was purchased on November 3, 2017, and is depreciated to the nearest whole month using the double declining balance method. The total estimated useful life is 10 years with a residual value of $200,000 Required 1. Calculate and record depreciation for the year just ended April 30, 2021, for both the building and equipment 2. Prepare the property, plant, and equipment section of the balance sheet at April 30, 2021
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