Compute the revised annual depreciation

Assignment Help Accounting Basics

Reference no: EM131829036

Question: On January 1, 2017, the Hermann Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straightline method with a useful life of 10 years and a salvage value of $2,000. On this date, the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value. Compute the revised annual depreciation.

Reference no: EM131829036

Questions Cloud

What is the effective cost of borrowing in this case : What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

Compute annual depreciation using the straightline method : Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000.

Why do management requested the accounting treatment : Ivy Company purchased land and a building on January 1, 2017. Management's best estimate of the value of the land was $100,000 and of the building $250,000.

Ensure the fair treatment of brokerage firm clients : Which one of the following actions will not help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made?

Compute the revised annual depreciation : On January 1, 2017, the Hermann Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600.

Construct journal entries to record the transactions : Echo Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment.

Offers lifetime annuity to retiring professors : Professor’s Annuity Corp. offers a lifetime annuity to retiring professors.

Record the sale of the equipment : Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2017.

Has not violated the code and standards : Has not violated the Code and Standards. Violated the Code and Standards by failing to properly distinguish factual information from opinions.

User Account

All Pages