Calculate the annual depreciation expense for the years 2020 to 2024 and the carrying amount at December 31, 2024. 2020 2021 $ 2022 $ 2023 $ 2024 $ Depreciation Expense eTextbook and Media List of Accounts Save for Later Question Part Score Carrying Amount Attempts: 0 of 3 used Submit Answ
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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- Straight-Line Depreciation Refer to the information for Irons Delivery Inc. above. Irons uses the straight-line method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2019 and 2020.The intangible assets section of Cheyenne Corp.'s balance sheet at December 31, 2022, is presented here. Patents ($75,000 cost less $7,500 amortization) $67,500 Copyrights ($53,400 cost less $37,380 amortization) 16,020 Total $83,520 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $27,000 legal costs to successfully defend the patent against infringement by another company. Jan.-July Sept. 1 Oct. 1 Developed a new product, incurring $139,000 in research and development costs during February. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $20,000. Paid $50,000 to a quarterback to appear in commercials advertising the company's products. The commercials aired in September. Acquired a copyright for…Current Attempt in Progress Joseph Geary, the controller of Carla Vista Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Useful Life (in Years) Salvage Value Accumulated Depreciation, Old Type of Asset Old Date Acquired Proposed Proposed Cost Jan. 1, 2022 Building Jan. 1, 2014 $2,717,000 $536,600 40 50 $124,000 $93,000 ● Warehouse Jan. 1, 2017 256,000 64,000 25 20 19,000 15,000 All assets are depreciated by the straight-line method. Carla Vista Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Joseph's proposed changes. (The "Proposed" useful life is total life, not remaining life.)
- Bonita Company purchaseda new plant asset on April 1, 2020, at a cost of $738,000. It was estimated to have a service life of 20 years and a salvage value of $53,400. Bonita' accounting period is the calendar year. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, eg. 45,892.) Depreciation for 2020 24 Depreciation for 2021 %24 eTextbook and Media Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, eg. 45,892.) Depreciation for 2020 %24Required information [The following information applies to the questions displayed below.] Tater Meer purchased a new car for use in her business during 2021 for $75,000. The auto was the only business asset she purchased during the year, and her business was very profitable. Calculate Tater's maximum depreciation deductions for the automobile in 2021 and 2022 under the following scenarios: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) b. Tater wants to maximize her 2021 depreciation using bonus depreciation. Description 2021 Amount (1) Original basis of auto $ 75,000 (2) Bonus percentage (3) MACRS depreciation 0 (4) Luxury car limitation Depreciation deduction for 2021 0 $ $Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: 5 years or 10,000 hours Service life Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,400 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 2019 $ 36,000 2020 $ 36,000 b. Sum-of-the-years'-digits method 60,000 v 2019 $ 2020 $ 48,000 c. Double-declining-balance method 2019 $ 79,200 2020 $ 47,520 d. Activity method based on hours worked 2019 $ 30,636 x 2020 $ 25,200 e. Activity method based on units of output 2019 $ 50,000 v 2020 $ 32,000 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? a. Straight-line method 2019 $ 36,000 x 2020 $ 36,000 x b.…
- Required: Compute for the following: Gain or loss on sale of Asset P Total depreciation expense for 2021 Adjusted cost of PPE as of Dec. 31, 2021 Carrying amount of PPE as of Dec. 31, 2021Visit www.sec.gov/edgar and search for the BJ's Wholesale annual report (10-K) for the year ended February 1, 2020, using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system). Search or scroll within the annual report to find the balance sheet, labeled "Consolidated Balance Sheets." Required: 1. Find the amounts reported for accumulated depreciation for the period ended February 1, 2020, and February 2, 2019. Assuming no depreciable assets were sold during the year, determine the adjustment for BJ's depreciation for the year and compute the adjusted balances of the related accounts. 2. For simplicity, assume the entire amount reported for "Prepaid expenses and other current assets" represents the balance of the Supplies account. If the year-end balance of the Supplies account prior to any adjustment is $200,000 (in thousands), determine the adjustment that was made to Supplies (and Supplies Expense) at the end of the current year and compute the adjusted balances of the…Current Attempt in Progress Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. Blossom estimates the machine's useful life will be five years or 6,118 units with a residual value of $87,910. Assume the machine produces the following numbers of units each year: 893 units in 2021; 1,448 units in 2022; 1,426 units in 2023; 1,222 units in 2024; and 1,129 units in 2025. Blossom has a December 31 year end. (a) Your Answer Correct Answer (Used) Your answer is correct. Determine the cost of the machine. as/ui/v2/assessment-player/index.html?launchid-061b09d5-7a2c-4e01-8697-0b79ec3cfa95# 3- A 4 acer $10 40 F12 PrtSc Pause
- Compute the Depreciation on December 31, 2021SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU What amount should be recorded as depreciation for 2021? a. 287200 b. 384000 c. 460000 d. 359000Classified Balance Sheet: Identify each of the following elements as a Current Asset (CA), Property, Plant & Equipment (PPE), Current Liability (CL), or Long-Term Liability (LTL) Cash ________ Sales Tax Payable ________ Machinery ________ Note Payable (due in 2029) ________ Accumulated Depreciation ________ Salaries Payable ________