User Account

All Pages

Calculate the depreciation expense

Assignment Help Financial Accounting
Reference no: EM133101689

Question - Ian Co. has provided you with the following information about its long term assets: On July 1, 2018, Ian purchased machinery costing $3,500,000 from a manufacturing company outside the country. Ian paid $200,000 to ship the machinery to Canada. Ian also paid $50,000 to install the machinery. Ian estimates the useful life of the machinery to be 10 years with $500,000 residual value. Ian uses the straight line method of depreciation for the machinery. The company yearend is December 31.

Required -

a. Prepare the journal entry necessary on July 1, 2018 to record the purchase of the machinery. Enter your answer in the section provided on the right side of this sheet.

b. Calculate the depreciation expense for 2018, and 2019 using the straight line method and prepare the journal entries to record the depreciations for 2018 and 2019.

c. On January 1, 2020 Ian changed the estimate of the residual value to $400,000 and the total useful life to 12 years. Calculate the depreciation expense for 2020.

d. On January 1 2021 Ian sold the machinery for $3,000,000. Prepare the journal entry for this transaction.

Reference no: EM133101689

Questions Cloud

Explain the tentative and cautious : Explain this feature of academic writing clearly pointing out its implications for writing a good MBA research project.
Identify the four ms of operation : 1. Identify the Four Ms of Operation 2. Discuss/ Explain in your own words the concept of Four Ms of Operation
Organizational crisis and related systems : Organizational Crisis and Related Systems Individual damage after the crisis is a major factor that is often ignored
What date will appear in block : Verna was hired on March 23, 1992 and took a maternity leave beginning September 6, 2002. What date will appear in Block 10 of the Record of Employment
Calculate the depreciation expense : On January 1, 2020 Ian changed the estimate of the residual value to $400,000 and the total useful life to 12 years. Calculate the depreciation expense
Organizational performance is the fifth aspect of model : Organizational performance is the fifth aspect of the model, reflect on the question, do certain leadership behaviors improve and sustain performance
Death-dying ethics of refusing treatment : Ethical Issues Related to Death & Dying (2) Ethics of Refusing Treatment
Draft a mission statement for the company : Acme Airlines is an international carrier. The airline's transport passengers and/or freight all over the globe. The CEO of Acme Airlines, namely Wile E. Coyote
Flourish in hostile environments : How the early Christian Communities were structured to flourish in hostile environments,

Reviews

Write a Review

Financial Accounting Questions & Answers

  What documents will you seek during discovery to address

As the forensic accountant hired by the U.S. Justice Department to litigate this case, answer the following: What documents will you seek during discovery to address the whistle-blower’s allegations?

  Compute for the correct amount of inventory

Compute for the correct amount of inventory. On December 31, 2021, the entity conducted a physical count and revealed an initial amount of inventory.

  Calculate cash flow from operating activities

Calculate cash flow from operating activities. Prepare the 2020 statement of changes in equity. The short-term investments are riskless and will be converted

  What the Ks segment contribution margin

Sands Corporation operates two stores, K and M. The following information relates to store K: What the Ks segment contribution margin

  Calculate the present value of the dividends

Calculate the present value of the dividends during the fast growth period. What is the price of the share at the end of the fast growth period (P4)?

  Evaluate the financial statements and the financial position

Evaluate the financial statements and the financial position of health care institutions - Describe the overall planning process and the key components of the financial plan.

  How does the company define cash and cash equivalents

Compare the most recent numbers to the numbers reported on the income statements in the previous two years, analyze the company's profitability trends.

  What is the net present value of alternative

What is the net present value of Alternative 2? A company is considering two alternative investment projects. The estimated net cash flow

  How might product life-cycle budgeting aid the company

The accounting system of Ski Valet is very traditional in its reporting functions with the calendar year being the company's fiscal year. It includes an abundance of information that can be used for various reporting purposes. How might product life-..

  How are various management systems such as human resource

How are various management systems such as human resource management, costs, capital budgeting, and performance measurement incorporated

  Company started the year with total assets

ABC Company started the year with total assets of $70,000 and total liabilities of $50,000. During the year the business recorded $150,000 in sales, $85,000 in expenses, and dividends of $10,000. The net income reported by ABC Company for the year wa..

  What is arquitectonica cost of capital

The firm intends to implement projects whose total NPV is €20. If the firm's tax rate is 38%, what is Arquitectónica's cost of capital?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd