Calculate the depreciation expense on the garage

Assignment Help Accounting Basics
Reference no: EM132886291

Question - JoKo Company recently negotiated a lump-sum purchase of several assets from a road equipment dealer who was planning to change locations. The purchase was completed on April 26, 2021, at a total cash price of $800,000 and included a garage with land and certain land improvements and a new heavy-duty, general-purpose truck. The estimated fair market values of the assets were: garage, $502,500; land, $301,500; land improvements, $150,750; and truck, $50,250. Depletion Company's year-end is December 31, 2021.

Required -

1. Show a schedule to allocate the lump-sum purchase price to separate assets that were purchased. Also present the general journal entry to record the purchase.

2. Calculate the 2022 depreciation expense on the garage using the straight-line method and assuming a 15-year life and a $37,500 salvage value.

3. Calculate the 2021 depreciation expense on the land improvements assuming an 8 year life and double-declining-balance depreciation.

4. The truck is expected to last 5 years and have a salvage value of $5,000. Show a schedule showing each year's depreciation on the truck, assuming (a) 5-year straightline depreciation and (b) double-declining-balance depreciation.

Reference no: EM132886291

Questions Cloud

Federalist representative democracy : A Federalist representative democracy requires both personal responsibility and social responsibility of its citizens through personal involvement
Discuss the evolution of presidential power : Explain the U.S. Congress's structure and makeup. Describe the differences between the U.S. House of Representatives and the U.S. Senate.
Effects of single-term for president : Compare and contrast the effects of a single-term for a president with two-term and no term limit analyzing which works better
Challenges facing your chosen profession in australia : Discuss any significant issues/challenges facing your chosen profession in Australia and in India - Continuing Professional Development requirements
Calculate the depreciation expense on the garage : Calculate the 2022 depreciation expense on the garage using the straight-line method and assuming a 15-year life and a $37,500 salvage value
Reconciliation be frightening for the men : Why might the thought of a reconciliation be frightening for the men? (the story is called the interlopers)
How public administration different from private management : What are the implications of these differences for the public administrator in the areas of Human Resource Management; and Decision Making
Review the newcastle city council workforce plan : Review the Newcastle city council workforce plan against patterns in both the exiting employees and workforce changes.
How much is the book value per preference share : How much is the book value per preference share and ordinary share if preference is non-cumulative and non- participating

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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!

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