The depreciation on the equipment

Assignment Help Accounting Basics
Reference no: EM13881775

1.On January 2, 2013, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $30,625. The expenditures made to acquire the asset were as follows:


Purchase price ............ $154,000
Freight charges ........... 2,000
Installation charges .......... 4,000
Jackson's policy is to use the double declining balance (DDB) method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipment's life.

Required:
1. Calculate depreciation for each year of the asset's eight year life.
2. Discuss the accounting treatment of the depreciation on the equipment.

Reference no: EM13881775

Questions Cloud

Is it statistically different from the period : Holding the job vacancy rate constant, what is the average unemploy- ment rate in the period beginning in the fourth quarter of 1966? Is it statistically different from the period before 1966 fourth quarter? How do you know?
What will be the rate of return over a three-year period : What will be the rate of return over a 3-year period to the contractor that paid for, installed, and operates the system, if its initial cost was $9,000,000 and the profit for each of the 3 years is the same as it was in 2010?
Procedure to prevent recurrence of an incident : The chemical reactor shown below has a cover (called a head) that is held in place by a series of bolts. The head is made of stainless steel (SG = 8.0), is 3 in. thick, has a diameter of 24 in., and covers and seals an opening 20in. in diameter.
Demand for the particular good rose : It is often said that the prospect of EU membership made central European nations a better, safer place to invest. Using the Solow diagram, show how this would affect medium term growth in these nations. What sort of ‘footprints’ would this leave in ..
The depreciation on the equipment : 1.On January 2, 2013, the Jackson Company purchased equipment to be used in its manufacturing process.
Read through the tree trimming project case : Read through the Tree Trimming Project case in chapter 13 of the textbook. This case refers to the earned value (EV) of the owner, Will Fence's Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in..
Demographic trends in different areas of the country : Discuss the impact of each of the following on prepayment risk for a mortgage backed pass through security (MBS): a. High coupon interest MBS versus low coupon interest MBS b. MBS issued six years prior versus MBS issued this year c. Demographic tren..
Provides essential information to assess a given project : When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a given project.
Estimate the adiabatic flame temperature of cyclopentane : Suppose you discover after the combustion has been carried out that the thermocouple is not functioning properly. Use the final pressure gauge reading of 75.3bar to estimate the adiabatic flame temperature of cyclopentane. Do not assume ideal gas ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Par-value common shares

1. On January 2, 2011, Mize Co. issued at par $300,000 of 9% convertible bonds. Each $1,000 bond is convertible into 30 shares. No bonds were converted during 2007.

  Using the current system estimated manufacturing overhead

come-on-in manufacturing produces two types of entry doors deluxe and standard. the assignment basis for support costs

  Prepare an income statement

1. The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet (work sheet).  Indicate whether each balance should be extended to (a) an Income Statement column or (b) a Balance Sheet co..

  In 1956, nicolai rizzoli opened a pizza restaurant

In 1956, Nicolai Rizzoli opened a pizza restaurant that he named Rizzoli in St. Louis, Missouri. Over the years, he opened both company and franchise locations and grew the business to include over 40 restaurants that serve the three states around..

  What circumstances would it be necessary to manually

Under what circumstances would it be necessary to manually update accounts payable prior to the receipt of a vendor invoice?

  Characteristic of absorption costing

What characteristic of absorption costing caused the drop in net operating income for the second quarter and what could the controller have said to explain the problem?

  Explain what could have happened on a b c d how the above

the plant manager decides that what is needed is an objective appraisal of what should be done. he hires june collins

  What is the amount of fabric purchases

Linda Candle Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 50 percent of sales. Product purchases and payments are to be made during the month preceding the month of sale.

  Describing the tax benefit rule

Donald received this refund later in the same month. Is the California refund a taxable income for 2011? Can you describe the tax benefit rule in your own words?

  The empire hotel is a full-service hotel in a large city

the empire hotel is a full-service hotel in a large city. empire is organized into three departments that are treated

  Prepare the income statement the statement of changes in

after nate maggie nicol and lindsay finished medical school they decided to open a new medical prac-tice named new

  Using the single plantwide factory overhead rate with an

1 pinacle corp. budgeted 300000 of overhead cost for 2012. actual overhead costs for the year were 290000. pinacles

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