Darth Vader lightsaber is a depreciable asset. He uses the straight-line depreciation method. He purchased the lightsaber on August 1, 20x1 for $85,500. It has a salvage value of $10,800 and has a useful life of 9 years. The book value on Darth Vader's lightsaber is $68,900 on July 1, 20x3. On that date, Darth Vader determines that the asset's salvage value should be $5,800 instead of the original estimate of $10,800. What is the depreciation expense Darth Vader should recognize during the last six months of 20x3? Multiple Choice $4,507.14 $2,460.71 $1,867.86
Q: Universal Sports Supply began the year with an inventory balance of $72,000 and a year-end balance…
A: Inventory Turnover Ratio: The number of times that a firm has sold its inventory and then restocked…
Q: Carter Corp. uses the "Income Summary" account when it makes its closing entries. The following…
A: Lets understand the basics. Temporary accounts are accounts which needs to be closed at the year end…
Q: Company ABX in Toronto is shipping 1050 units of computers to South Korea. Each computer is priced…
A: Insurance is an agreement under which the insurer that is from whom insurance has been taken,…
Q: The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000…
A: Return on Capital Employed The ratio of a company's operational earnings to the capital employed to…
Q: Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started…
A:
Q: ke me to the text rago Company has a fiscal year end on December 31. The company has only one…
A: Date Purchase Sale Balance Quantity Cost Quantity Cost Quantity Value Jan 15 100…
Q: 4. The company issues an invoice for coordination and security services to the customer in the…
A: Journal Entry :- A journal entry is the act of recording any transaction, whether one that is…
Q: Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount…
A: The periodic system does not maintain the record for cost of goods sold with every transaction in…
Q: 3. Counselors of Griffin purchased equipment on January 1, 2023, for $67,000. Counselors of Griffin…
A: Introduction: A journal entry is indeed a record of a commercial transaction in a company's…
Q: ngageNOWv2 | Online teachin x = Ch. 12 Key Terms - Principles of A X…
A: The bonds are the financial instruments for the business that are used to raise money from the…
Q: Your mom asked your opinion if she will be joining the cooperative in her office. She wants to know…
A: It is given in the question that at the beginning of the month there is a contribution of P1,000 per…
Q: Entries and schedules for unfinished jobs and completed jobs Hildreth Company uses a job order cost…
A: Job sheet Materials Labor Overhead Total Job 101 19,320 19,500 6160 44,980 Job 102…
Q: Date Acquired Jan. 21 22 23 24 222222222 25 26 27 28 20 31 Total Asset Cash Accounts Receivable…
A: In the context of the given question, we are required to compute the total assets of the financial…
Q: Megall Company began operations on Jan. 1, YR1. For tax purposes, Megall has always used FIFO method…
A: In the context of the given question, we are required to prepare journal entries and comment on the…
Q: The ABC Manufacturing Company has the following transactions: 1. The company processed P400,000 raw…
A:
Q: Calculate the deferred tax liability given the following items incurred in 2020 by Company B.…
A: A deferred tax liability is a statement on a company's balance sheet that captures taxes that are…
Q: A company reports the pilowing beginning 450 units. Ending inventory at January 31 totals 170 units.…
A: LIFO - Last in first out means that the units purchased latest will be sold first , therefore the…
Q: 32) Which of the following is not a way for an offer to terminate? a. Revocation b. Lapse c.…
A: Terminate means to finish or end or cease any contract, firm or anything. The question requires to…
Q: On 1 January 2010. A company purchased equipment for BD 230,000. The new machines have a useful life…
A: These 2 are the most common methods of depreciation: Straight line depreciation (SLD). This method…
Q: Select the necessary words from the list of possibilities to complete the following statements. 1.…
A: Internal control: Internal control as defined by the Committee of Sponsoring Organizations of the…
Q: In 2022, Ava, an employee, who files single, has AGE of $26,600 and incurred the following…
A: The question lists down the expenses incurred by Ava and seeks answers on what would be itemized…
Q: Problem 10-1 A review of the accounting records of Little H Inc indicated that the company incurred…
A: Selling,General and Administrative Expenses (SG&A) are expenses that are not assigned to a…
Q: Which of the following is NOT a way in which Process and Job Order cost systems are similar? O Both…
A: job costing is a type of posting in which there is allocation of all the cost to the particular job…
Q: Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine…
A: Surplus arises when total funds are more than total cost of the company. Deficit arises when total…
Q: Why are budgets so important for all organizations, and what are some advantages and disadvantages…
A: Budget Meaning: Budgeting allows you to plan the finances of your organization. Budgeting is one of…
Q: Fee Income Interest Income Salaries Expense Balance of the Sheila James Dancing Studio as of October…
A: financial statement include income statement , balance sheet statement of change in equity and…
Q: A manufacturer offers a 25/20 c discount if the invoice subtotal is $1,000. If the list price is $52…
A: Companies gives discount to attract the sales and increase the sales of company but that is the cost…
Q: Prepare the journal entry to record North Company's January 15 salaries expense and related…
A: FICA Social Security Tax Payable = $32,000 x 6.2% = $1,984FICA Medicare Tax Payable = $32,000 x…
Q: ABC purchased 80% of the voting shares of XYZ Ltd. on Jan.1.2022 for $669,200. Assets Cash Inventory…
A: Calculation of Balance for Goodwill as on Dec 31, 2022 Particulars Amount ($) Amount ($) Cost…
Q: Elora Hotel's restaurant provides 3 services namely, breakfast, lunch, and dinner services. The…
A: If lunch services are dropped then following effect will take place 1. 60% of fixed cost is of…
Q: Compute the following requirement. Data is as follows: Beginning Raw Materials Inventory is P30,000.…
A: Purchases - Purchase is the Inventory Purchase in the production. It in recorded in the income…
Q: 1) While looking through the invoices, you found Invoices 23-57, 60-95, and 99-110. It appears that…
A: Introduction: An invoice is a document sent by a seller to a customer in order to collect payment.…
Q: a. Cash received from a customer on account was debited for 4,700 pesos and Accounts Receivable was…
A: Correcting Entries - Correcting entries are those that correct the mistake made at the time of…
Q: Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $99 in…
A: Petty cash is maintained to incur the pretty expenses without bothering the main cash balance. All…
Q: Jones Corporation had a beginning inventory of 300 units which it bought for $5 each. Jones bought…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…
Q: Solve the following problems. Show clean and complete details of your work for each number. Problem…
A: Hi There, as per the policy of Bartleby we are bound to give the answer of first question only,…
Q: PA 6. Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest…
A: Amortization schedule is the one which is prepared to record the interest incurred during a period,…
Q: 1. A store is determining how potato chips to order considering the annual demand for this is 200,…
A: EOQ :— EOQ means economic order quantity. It is the Calculation through which Companies & any…
Q: 4. The company issues an invoice for coordination and security services to the customer in the…
A: When the sale has been made, but the buyer has not made payment yet, then invoice is the document…
Q: CITTE Requirement Construct a flexible budget performance report for Hampton Muffins for the year.…
A: Flexible Budget :— Flexible Budget is a type of Variable Budget that predict the Production or…
Q: The Whispering Cove plc has provided the following as at December 31, 2017 DR CR…
A: a) Profit and Loss of the Company - It includes revenue earned and expense incurred of the company.…
Q: July 2021, Hard Rock Pty Ltd a small construction business purchased two business assets for the…
A: As the time goes no there is decrease in value of assets with time but there must be sufficient…
Q: Spero Ticket Co. has two operating departments (Sports and Concerts) and two service centers…
A: Step method of allocation is one of the techniques of allocating the costs of service departments to…
Q: TB MC Qu. 12-77 (Algo) Antique Corporation is contemplating the ... Antique Corporation is…
A: Given, Original cost of this asset = $34,000, Depreciation expense = $26,000, Current estimated…
Q: At the beginning of the current year, Grant Company’s work in process inventory account had a…
A: WIP refers to work in process account . Direct materials , direct labor and overhead are production…
Q: On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share. The…
A: Introduction: If investments in equity shares are less than 20%, then such investment is carried at…
Q: Cash Corporation wants to purchase a new machine for $400,000. Management predicts that the machine…
A: Depreciation- Depreciation is the gradual decrease in the value of assets caused by wear and tear.…
Q: The Cash account of Safety First Security Systems reported a balance of $2,540 at December 31, 2024.…
A: Bank reconciliation refers to the method used by the company to match the bank statement as well as…
Q: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage…
A: Inventory is one of the important current assets of the business. It includes inventory of raw…
Step by step
Solved in 2 steps
- Four years ago on January 2, Titus purchased a long-lived asset. The purchase price of the asset was 250,000, with no salvage value. The estimated useful life of the asset was 10 years. Titus used the straight-line method to calculate depreciation expense. An impairment loss on the asset of 30,000 was recognized on December 31 of the current year. The estimated useful life of the asset at December 31 of the current year did not change. What amount should it report as depreciation expense in its income statement for the next year?The original equipment was purchased 3 years ago for $200,000 and was depreciating using the 5 Year MACRS depreciation schedule over 6 years. It has currently been depreciated 71% of the original cost. The equipment was planned to be sold at the end of it’s 5th year of use before it was fully depreciated for a salvage value in two years at an estimated $30,000. The old equipment has a current salvage value of $98,000.What's is the new NPV?Sokolsky Excavating purchased a used dump truck for $90,000 on January 1, 2018. Thecompany has depreciated the dump truck using the straight-line method over its estimated10-year life with a $6,000 residual value. Sokolsky sold the dump truck on January 1,2021, for $68,700. Total accumulated depreciation on the dump truck on the date of salewas $25,200. What gain or loss should be recorded on the sale?a. A gain of $3,900b. A loss of $3,900c. A loss of $21,300d. A gain of $21,300
- A man bought a machine for $ 984,017 six years ago. It has a salvage value of $ 36,879 four years from now. He sold it now for $ 42,216. What is the sunk cost or the value of the machine that the man lost if the depreciation method used is a Sum of the Years' Digit method?On July 1, 2015 , Smile Corporation purchased a machine at a cost of P300,000. This machine was estimated to have a useful life of 5-years with no salvage value and was depreciated using the straight-line method. On January 2, 2018. Youth determined that this machine could no longer work efficiently, that its value had been permanently impaired, and that P90,000 could be recovered over the remaining useful life of the machine. In its December 31, 2016 statement of financial position, how much should Smile report as carrying value of the machine?Miss Granny purchased a machine amounting to $700,000 on January 1, 2013 providing the newest kind of technology to improve their operations. It has a useful life of 20 years and a salvage value of $50,000. However, on June 30, 2018, they decided to dispose it to liquidate some of its debts. Therefore, they classified it as held for sale. The fair value of the machine on that date $510,000 and the cost of disposal is $10,000. On November 30, 2019, the company decided again to continue to use it since they were able to obtain funding from their investors through follow-on offering of additional shares to pay their currently maturing obligations. On this date, the fair value of the machine is $490,000 and the cost of disposal is $5,000. How much is the gain or loss in the reclassification in 2019?
- Denim, Inc. purchased a building on January 1, 2010. The building cost $2,600,000 and had an estimated salvage value of $200,000. As of January 1, 2010, Denim estimated the useful life of the building to be 30 years. The building is depreciated using the straight-line method. On January 1, 2020, Denim, Inc. determined the building to have a remaining useful life of 15 years and an estimated salvage value of $300,000. What type of accounting change does this represent by placing an “X” in the space provided? ____Change in accounting principle. ____Change in accounting estimate. ____Change in reporting entity. ____Correction of an error.The Black Limo Company (BLC) purchased a limo on January 1 of Year 1. The limo cost $48,000. It had an expected useful life of 4 years and an $8,000 salvage value. Assume BLC uses straight-line depreciation. At the beginning of Year 3, the limo is sold for $30,000 cash. As a result of the asset disposal BLC will recognize a ______ activities.The Vermont Construction Company purchased a hauling truck on January 1, 2009 at a costof $35,000. The truck has a useful life of eight yearswith an estimated salvage value of $6,000. Thestraight-line method is used for book purposes. Fortax purposes, the truck would be depreciated with theMACRS method over its five-year class life. Determine the annual depreciation amount to be taken overthe useful life of the hauling truck for both book andtax purposes
- On February 1, 2006, Mason Company purchased a building for $359,000. The building was assigned a useful life of forty years and a salvage value of $11,000. XYZ Company uses the straight-line depreciation method to calculate depreciation on its long-term assets. The building was sold for $121,000 cash on August 1, 2029. Calculate the amount of the loss recorded on the sale. Do not enter your answer with a minus sign in front of your number.Lugar Company purchased a piece of machinery for $28,500 on January 1, 2016, and has been depreciating the machine using the sum-of-the-years'-digits method based on a five-year estimated useful life and no salvage value. On January 1, 2018, Lugar decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life is changed to a total of six years from the date of purchase. Ignore income taxes. Required:1. Prepare the appropriate journal entry, if any, to record the accounting change under GAAP.2. Prepare the journal entry to record depreciation for 2018.Pangahoy Corporation’s facility was heavily washout by flood. The disaster destroyed almost of its inventory and some of its PPE. Pangahoy decides to derecognized a machine used in manufacturing designer parts on July 31, 2019 since it was nonfunctional already. The machine was acquired on September 1, 2016. Straight-line depreciation method was used. The asset had an estimated salvage value of P50,000 and a five-year life. On April 30, 2018, the balance in the accumulated depreciation is P82,500. The machine was scrapped and the company did not receive a single consideration.How much would be the loss on derecognition to be recognize?