User Account

All Pages

Record the depreciation expense using straight-line method

Assignment Help Financial Accounting
Reference no: EM132608731

On March 31, 2021 Holland Industries purchased assets for $2,500,000 cash. Before completing the purchase, Holland had an appraisal completed to determine the relative value of each of the assets included in the purchase price.

  • The appraisal indicated that the fair value of the land, if purchased separately, would be $375,000, the building's value is $1,900,000, the manufacturing equipment $192,500, and the office and computer equipment $55,000. In addition to the land, building and equipment, the purchase price includes inventory with a net realizable value of $27,500.
  • The anticipated life of the building is 25 years, the manufacturing equipment 10 years, and the office and computer equipment 5 years, with no residual value for any of them. Holland has a December 31 year end.

Instructions

Question a) Record the purchase on March 31, 2021.

Question b) Record the depreciation expense for 2021 using the straight-line method assuming the company chooses to prorate depreciation based on the number of months the asset has been in use.

Reference no: EM132608731

Questions Cloud

Robotics-artificial intelligence serve different purposes : Robotics and artificial intelligence serve very different purposes. However, people often get them mixed up.
Identifying and removing malware from windows systems : How often should you update your antivirus protection? Is the manual quick scan good enough protection for a system? What risk or threat do malware.
How many pairs of sunglasses should REI buy : Frank offers a price of $50 for each unit, but no longer accepts returns. How many pairs of sunglasses should REI buy to maximize their expected profits
Discuss appropriate structures of the datasets : The Final Paper for this course will enable you to identify 2 data sets and discuss appropriate structures of the datasets. Describe the dataset fields
Record the depreciation expense using straight-line method : Record the depreciation expense for 2021 using the straight-line method assuming the company chooses to prorate depreciation
Prepare a partial balance sheet for solid company : Prepare a partial balance sheet for Solid Company at December 31, 2021 highlighting the shareholders' equity section. Assume the company reported net income
Find how would assess the performance of the portfolio : Find How would assess the performance of the portfolio pertaining to the investor and in which portfolio would you advise the investor to invest and why?
Reflecting on your internship : What was the best and worst parts of your overall experience? What surprised you about this internship? What, if any, were any dissapointments?
Provide a critical analysis and review of one current issue : Critical synthesis of the literature, with conclusions drawn. Please refer to the QManual, in this Moodle section for guidance on how to construct a report.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the adjusting journal entry needed on december

Prepare the adjusting journal entry needed on December 31, 2012 and prepare the journal entry to record the sale of the Carolina Company stock during 2013.

  Fundamental qualitative characteristic in iasb framework

Relevance is identified as a fundamental qualitative characteristic in the IASB framework. However, the framework is criticised for not identifying mechanism

  Solve the after-tax final year adjustment from the sale

Calculate the after-tax final year adjustment from the sale of the tracking device.The Central Intelligence Agency (CIA) needs to invest in the next generation

  What is the rate of interest

Suppose you deposit $2,000 today and your account will accumulate to $4,000 in 10 years. What is the rate of interest?

  Calculation of the failure-to-file penalties

Which of the following is the calculation of the failure-to-file penalties?

  Why an impairment loss needs to be recognised

Explain and show calculations of why an impairment loss needs to be recognised in relation to the machinery. Provide the appropriate journal entry at 30 June

  House painted and $800 for built-in bookshelves

Ellen purchased a home in 2011 for $60,000. She paid $12,000 and borrowed $48,000. In 2012 she added a room to the house which cost $10,000. In 2013, she paid $625 to have the house painted and $800 for built-in bookshelves. As of January 1 of the cu..

  Marketing department requires sales personnel to call

Ian’s place sells pet supplies to dog and cat owners. To sell its products, the marketing department requires sales personnel to call on the pet store retailers within their assigned geographic territories.  Identify the resources, events, and agents..

  Fill all related journal entries in journal form

Make all related journal entries in journal form for this purchases and the related payment.

  Compute the sharpe ratios of the fund and gold

Compute the Sharpe ratios of the fund and gold. Based only on these ratios, how desirable does investment in the fund by itself compare to investment

  Draw up for years of the plant and motor vehicles accounts

Draw up for years of 2014, 2015 and 2016 the relevant extracts from the Statement of Financial Position as at the end of each year.

  Determine whether the company should purchase the machine

Sandcastle’s Inc.’s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine, the company would not have to buy bricks. The estimated useful life of the machine is 15 years, and the purchase pri..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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