Solution-What should the amortization expense be going

What should the amortization expense be going forward

Assignment Help Cost Accounting

Reference no: EM133064893

Questions -

(1) Purity Manufacturing Ltd. has been depreciating their building using straight line method over 50 years. The current carrying amount is $775,000 they use a residual value of $45,000, and there is currently a remaining useful life of 20 years. After engineers inspected the building at the end of the prior year, they found the estimated useful life to actually be another 25 years. If management agrees to use the new estimated useful life, what should the amortization expense be going forward?

(2) On April 1st 2021 one of the water bottling machines breaks down and is given away to a metal recycler. The cost on the machine was $65,000 and accumulated amortization was $62,500. Should this transaction be recorded? If no, why not? If yes, prepare the required journal entry with description.

Reference no: EM133064893

Questions Cloud

HRMT2001 Understanding the Business Environment Assignment : HRMT2001 Understanding the Business Environment Assignment Help and Solution, Southern Cross University - Assessment Writing Service

Calculate the maturity value : Question - If $3000.00 is invested for seven years and seven months at 6% p.a. compounded quarterly, calculate the maturity value

What gain should be recognised to other comprehensive income : The market value is £110m and costs to sell the building are estimated as $2m. What gain should be recognised to other comprehensive income

How much of the amount is interest : How much will a registered retirement savings deposit of $28 500.00 be worth in 15 years at 10.95% compounded monthly? How much of the amount is interest

What should the amortization expense be going forward : The current carrying amount is $775,000 they use a residual value of $45,000, What should the amortization expense be going forward

Prepare discontinued operations section of income statement : The assets are sold at a taxable gain of $1,550,000. Prepare the Discontinued Operations section of the income statement

Prepare Sunland Camping required journal entries : Sunland Camping's incremental borrowing rate and Sullivan's implicit interest rate are both 9%. Prepare Sunland Camping's required journal entries

How much impairment loss was allocated to the building : Moreover, the company has also determined the following for its building:Value in use P240,000. How much impairment loss was allocated to the building

Compute the tax payable by Ex Ltd : The subsidiary had paid a total dividend of $120,000 and had received a dividend refund from non-eligible RDTOH of $18,000. Compute the Part IV tax payable

User Account

All Pages

What should the amortization expense be going forward

Reference no: EM133064893

Reference no: EM133064893

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT