Reference no: EM131746449
Equipment, less accumulated depreciation of $31,500 at December 31, 2017, and $22,500 at December 31, 2016. $ 40,500 $ 49,500
Required information
Required:
a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2017?
References eBook & Resources WorksheetLearning Objective: 06-03 Describe alternative methods of calculating depreciation for financial accounting purposes and compare the relative effects of each on the income statement and the balance sheet.Difficulty: 3 HardLearning Objective: 06-06 Describe the effect on the financial statements of the disposition of noncurrent assets, either by sale or abandonment.Ask your instructor a questionCheck my work
Assume the same facts as in part a and assume that the estimated useful life of the equipment to HIROE, Inc., is eight years and that there is no estimated salvage value.
b-1. What was the original cost of the equipment?
b-2. What depreciation method is apparently being used?
Straight-line method
Double declining method
Written down value method
Units of production method
Sum-of-the-years' digits method
b-3. When the equipment was acquired?
July 1, 2014
December 31, 2014
July 1, 2013
March 31, 2012
December 31, 2015
References eBook & Resources WorksheetLearning Objective: 06-03 Describe alternative methods of calculating depreciation for financial accounting purposes and compare the relative effects of each on the income statement and the balance sheet.Difficulty: 3 HardLearning Objective: 06-06 Describe the effect on the financial statements of the disposition of noncurrent assets, either by sale or abandonment.Ask your instructor a questionCheck my work
c-1. Assume that this equipment account represents the cost of 10 identical machines. Prepare the horizontal model for sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2018, for $4,500. (Use amounts with + for increases and amounts with - for decreases.)
References eBook & Resources eBook: Describe alternative methods of calculating depreciation for financial accounting purposes and compare the relative effects of each on the income statement and the balance sheet.eBook: Describe the effect on the financial statements of the disposition of noncurrent assets, either by sale or abandonment.Ask your instructor a questionCheck my work
c-2. Assume that this equipment account represents the cost of 10 identical machines. Prepare the journal entry for sale of the machine to calculate the gain or loss sale of one of the machines on January 2, 2018, for $4,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)