Calculate the depreciation under the straight line method

Assignment Help Financial Accounting

Reference no: EM13165523

You are a staff accountant in a CPA firm. Your manager has asked you to provide a report containing accounting information on the following 3 clients:

Global Inc. purchased a machine and incurred the following expenditures:

Purchase price	$20,000
Freight costs	$1,000
Sales tax	$2,000
Insurance on shipment	$200
Insurance for the first year on the machine	$500
Installation of the machine	$2,000

Calculate the cost to be capitalized.
Make an entry that will show which expenses will be capitalized when recording the machine on the books.
Show the entry that will be recorded to expense the cost that will not be capitalized.

Brands Resources traded an old machine for a new machine. The book value of the old machine was $150,000 (original cost $320,000, less accumulated depreciation of $170,000). The fair value was $180,000. Brands Resources paid $20,000 to complete the exchange.

Prepare the journal entry to record the exchange.

Reliable Company purchased a machine on January 1, 2008 at a net cost of $85,000. At the end of the 4-year life, it expects the machine will have a salvage value of $5,000. It also estimates that the machine will run for 10,000 hours during its 4-year life. The company has a fiscal year that ends on December 31.

Year	Machine hours
2008	2,000
2009	3,000
2010	1,000
2011	4,000

Calculate the depreciation under the straight line method.
Calculate the depreciation under the double declining method.
Calculate the depreciation under the units of production method.

Reference no: EM13165523

Questions Cloud

What is the reactant in excess : Benzene, C6H6, is reacted with bromine, Br2, to produce bromobenzene, C6H5Br, and hydrogen bromide, HBr, as shown below. When 40.0 g of benzene are reacted with 95.0 g of bromine, 65.0 g of bromobenzene is produced.

Wave steepness is the ratio of wave height : Wave steepness is the ratio of wave height (WH) to wave length(WL) and is an indicator of wave stability. When wave steepness exceeds a 1/7 ratio; the wave becomes unstable and begins to break. Assume a data file exits with the following header

What is the longest wavelength of light : The third ionization energy of {rm Fe} is E_{rm i3} = +2952 kJ/mol What is the longest wavelength of light that could ionize Fe^(2+) to Fe^(3+)?

What is the ratio of oxygen atoms to hydrogen atoms : What is the ratio of oxygen atoms to hydrogen atoms in the mineral cacoxenite, Fe4(PO4)3(OH)3 • 12H2O?

Calculate the depreciation under the straight line method : Calculate the depreciation under the straight line method and calculate the depreciation under the double declining method.

What is the minimum mass od sodium bicarbonate : if 100 ml of 3m hcl is spilled on a lab bench, what is the minimum mass od sodium bicarbonate that must be used to neutralized the acid?

Calculate the individual masses of c, h and o : calculate the individual masses of C, H, and O in the 0.7549 g sample.

State three carbon species that has a carbon level of zero : a three carbon species that has a carbon level of zero at each carbon atom. b) two compounds that contain three carbon atoms and have a carbon atom with a carbon level of 1.

Joint individual tax return : You are to Prepare the Wardens-2019 2012 Form 1040 Joint Individual Tax Return, including Schedules A, B,, C, D, E, and F and Forms 2106, and any other form which you think is appropriate.

User Account

All Pages