James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below are the assets with their corresponding fair market value: Asset Description Fair Market Value Equipment $650,000 Office Furniture 1,190,000 Computer Equipment 960,000 Required: Calculate the depreciation in 2022 for the office furniture assuming they elect to use section 179 on the office furniture.

James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below are the assets with their corresponding fair market value: Asset Description Fair Market Value Equipment $650,000 Office Furniture 1,190,000 Computer Equipment 960,000 Required: Calculate the depreciation in 2022 for the office furniture assuming they elect to use section 179 on the office furniture.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

See similar textbooks

Similar questions

Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Company H started its operations in 2021 and made the following asset purchases: asset purchase date COST car 10/31/2021 $ 24,000 landscaping 8/25/2021 $ 2,200 office furniture 2/1/2021 $ 2,900 residential building 5/19/2021 $ 245,000 required: Determine the MACRS depreciation deductions for 2021 *and* 2022 for each of these assets.
Lopez acquired a building on June 1, 2015, for $26,433,500. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate.$fill in the blank 1 b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate.$fill in the blank 2
PT Kenko is committed to disposing of the building used by CGU ABC. As of June 30, 2021, all the criteria for this building indicate that the building can be categorized as a non-current asset for sale. The company treats building records using the cost model. The following are the details of the CGU ABC Building as of June 30, 2021: Scenario 1 USD Scenario 2 USD Cost (purchased on 1 Jan 2019) 10,000 10,000 Depreciation rate (straight line, no residual value) 10% 10% at 30 June 2021 Fair value 7,000 7,000 Cost to sell 200 200 at 30 December 2021 Fair value 7,000 7,800 Cost to sell 100 100 Disposal is planned to take place in February 2022. Instructions: Make the necessary journal entries for both scenarios on June 30, 2021 and December 30, 2021 (impairment/reversal of impairment)!
Duck Pond Golf Club purchased equipment on January 1, 2024, for $16,979. Suppose Duck Pond Golf Club sold the equipment for $12,000 on December 31, 2025. Accumulated Depreciation as of December 31, 2025, was $7,546. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Now, journalize the sale of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.)
PT Kenko is committed to disposing of the building used by CGU ABC. As of June 30, 2021, all the criteria for this building indicate that the building can be categorized as a non-current asset for sale. The company treats building records using the cost model. The following are the details of the CGU ABC Building as of June 30, 2021: Scenario 1 USD Scenario 2 USD Cost (purchased on 1 Jan 2019) 10,000 10,000 Depreciation rate (straight line, no residual value) 10% 10% at 30 June 2021 Fair value 7,000 7,000 Cost to sell 200 200 at 30 December 2021 Fair value 7,000 7,800 Cost to sell 100 100 Disposal is planned to take place in February 2022. Instructions: Make the necessary journal entries for both scenarios on June 30, 2021 and December 30, 2021 (impairment/reversal of impairmen
Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine was sold for $17,000, what was the anmount of the gain or loss recorded at the time of the sale? Select one: a. $16,000. b. $17,000 C. $68,000 d. $3,000
On July 1, 2024, a company purchased a $550,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds during 2024 as follows: Demolition of existing building on site $ 72,000 Legal and other fees to close escrow 12,400 Proceeds from sale of demolition scrap 9,800 What would be the balance in the land account as of December 31, 2024?
Lopez acquired and placed in service a building on June 1, 2018, for $41,564,200. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as residential rental real estate. $ b. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as nonresidential real estate.
A computer is sold on 1 June 2022. The details are as follows: (i) Cost $11,000 (being $10,000 plus $1000 GST) (ii) Accumulated Depreciation 1/7/2021 $4,000 (iii) Depreciation Method - Prime cost, 24% (iv) Consideration/sale proceeds of $3,000 (GST excl) which has been posted already from client to the computer asset account and has to be re-allocated). Prepared the required entries to correctly accouny for the disposal including depreciation up to the time of sale.
A microcomputer was purchased on January 1, 2017 at a cost of $11,000. It is expected to have a useful life of 5 years and a residual value of $1000. The microcomputer is depreciated using the straight line method. Assume the microcomputer is disposed of, after year end depreciation has been recorded on January 1, 2020. REQUIRED: Give the general journal entry to record the sale of the microcomputer under the following unrelated circumstances: 1. The microcomputer is sold for $1,000. 2. The microcomputer is sold for $7,300. 3. The microcomputer is abandoned Hint: Calculate Accumulated Depreciation balance at January 1, 2020
Lopez acquired a building on June 1, 2017, for $9,644,500. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as residential rental real estate. b. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as nonresidential real estate.