Calculate the total depreciation expense plus the loss

Assignment Help Accounting Basics

Reference no: EM131881794

Problem

On January 3, 2011, Shah Company purchased equipment for exist48,000. Shah planned to keep the equipment for four years and expected the equipment would then be sold fors4,000. On January 5, 2014 Shah sold the computer equipment for exist8,000.

(a) Calculate the depreciation expense for 2011, 2012 and 2013 under (1) the line method and (2) the double diminishing-balance method.

(b) Calculate the gain or loss on disposal if Shah had used (1) the straight-line method and (2) the double diminishing-balance method.

(d) Calculate the total depreciation expense plus the loss or minus the gain under (1) the straight method and (2) the double diminishing-balance method. Comment on your findings.

Reference no: EM131881794

Questions Cloud

How much should be deposited after the first withdrawal : Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual withdrawals of $2,000 can be made before depleting the fund.

Review the companys consolidated financial statements : Review the company's consolidated financial statements to evaluate whether the fi nancial statements presented comply with the presentation requirements.

What is the sustainable rate of growth : The total asset turnover is 1.77 and the debt-equity ratio is 60. What is the sustainable rate of growth?

What action should jenny recommend to management : Use the information provided to calculate the strategic? NPV, NPVstrategic, for Asor? Products' proposed equipment expenditure.

Calculate the total depreciation expense plus the loss : Calculate the total depreciation expense plus the loss or minus the gain under (1) the straight method and (2) the double diminishing-balance method.

Prepare a worksheet to consolidate the financial information : n January1, 2017 Pinnacle Corporation exchanged $3,808,500 cash. Prepare a worksheet to consolidate the financial information for these two companies.

How do you calculation earnings per share : How do you calculation Earnings Per Share (EPS)? Provide examples of actual companies and their respective EPSs per share?

What is the wacc if the cost of equity is ten percent : A small private company has $200,000 in debt and $400,000 in equity. The interest rate on the loan is Prime + 2%. Current Prime is 3.25%.

What are the tax consequences to wanda and to oriole : In January 2016, Wanda transferred machinery worth $200,000. What are the tax consequences to Wanda and to Oriole on the sale of the machinery?

User Account

All Pages