Reference no: EM131665640
Question - On July 1, 2017, Nike Company purchased for $3,600,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $150,000. Depreciation is taken for the portion of the year the asset is used.
Instructions
(a) Complete the form below by determining the depreciation expense and year-end book values for 2017 and 2018 using the
1. sum-of-the-years'-digits method.
2. double-declining balance method.
Sum-of-the-Years'-Digits Method 2017 2018
Equipment $3,600,000 $3,600,000
Less: Accumulated Depreciation
Year-End Book Value
Depreciation Expense for the Year
Double-Declining Balance Method
Equipment $3,600,000 $3,600,000
Less: Accumulated Depreciation
Year-End Book Value
Depreciation Expense for the Year
(b) Assume the company had used straight-line depreciation during 2017 and 2018. During 2019, the company determined that the equipment would be useful to the company for only one more year beyond 2019. Salvage value is estimated at $200,000.
(1) Compute the amount of depreciation expense for the 2019 income statement.
(2) What is the depreciation base of this asset?
Why is quality control important in spect
: Why is quality control important in SPECT? For the same radiation dose, what are the other factors that can modify the biological effects or their intensity?
|
Gdp indicates the economy is in recession
: In fact, two consecutive quarters of decline in GDP indicates the economy is in recession. But, does only real GDP goes down or nominal GDP also goes down?
|
Calculate the absolute value of the price elasticity
: In consequence, the daily quantity of visitors decreases from 2,200 to 1,800. Calculate the absolute value of the price elasticity of demand.
|
Define what types of information does each tool collect
: How are the data collection tools similar, How are they different, What are the strengths and weaknesses of each tool for each area
|
Compute the amount of depreciation expense
: Assume the company had used straight-line depreciation during 2017 and 2018. Compute the amount of depreciation expense for the 2019 income statement
|
Why is dna replication said to be semi-conservative
: Why is DNA replication said to be semi-conservative? Describe transcription. How may mRNA be modified before it leaves the nucleus?
|
Should denver engineering accept the outside offer
: On the basis of financial considerations alone, should Denver Engineering accept the outside offer? Show your calculations.
|
What is gdp and how is it measured
: What is GDP and how is it measured? Evaluate the validity of using GDP as a measure of economic output.
|
Prepare the journal entry to record income tax expense
: Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017
|