Switches to the sum-of-the-years-digits method

Assignment Help Accounting Basics
Reference no: EM13137657

Green Co. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2007 and the machine was placed in service at the beginning of 2008. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value will not change from the original $4 million. At the beginning of 2011, Green decided to change to the straight-line method.

Required:

1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2011?

2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2011?

Reference no: EM13137657

Questions Cloud

Bureaucratic barriers in homeland security : Is it true that the bureaucratic barriers between intelligence organizations seems to prevent their coordination?
Determining opinion on homeland security : What is you opinion of the following: A strategy should provide purpose for those that must plan how to best accomplish changing the existing environment in order to achieve the desired end-state.
Explain mechanical vibrations in a steel beam : Twenty-five samples of steel beam were chosen and tested for Young's Modulus. Eight had a modulus of E = 30 x 10^6 psi. Two had a modulus of E = 29 x 10^6 psi. Fifteen had a modulus of E = 30. x 1-^6 psi.
Find difference between pulse rates smokers-nonsmokers : Determine if there is any diff erence between the pulse rates of smokers and nonsmokers. Compute the p-value of the test. Can you draw any conclusions?
Switches to the sum-of-the-years-digits method : Suppose Green has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2011?
What will the company new break-even point : Assume that Ajack intends to have a profit of 20% more than the current profit. How many units must he sell to achieve his target?
How many 107 ag atoms are present : The natural abundance of 107 Ag is 51.84%. How many 107 Ag atoms are present in a piece of silver weighing 150 mg?
Explain modulus of elasticity : A linear isotropic material has the shear modulus of elasticity G of 11.5*10^6 psi and the Poisson's constant v of 0.3.
Total interest expense associated to bonds : The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2015. The total interest expense related to th..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd