Reference no: EM132722561

Question - The following scenarios relate to different companies and are independent.

Required - You must show all calculations. Depreciation calculated to the nearest month. Round amounts to the nearest dollar):

(a) A machine was purchased for $360,000 on October 1, 2019. It has an estimated useful life of ten years and an estimated residual value of $20,000. Depreciation for 2020, using the double declining-balance method, is $_____________.

(b) On January 3, 2019, a vehicle was purchased for $60,000. It has an estimated useful life of six years and a residual value of $9,000. It is expected to be driven 150,000 kilometers over its useful life. The asset was driven 32,000 kilometers in the second year. Depreciation for the second year, using the units-of-production method is $______________.

(c) On September 1, 2020, equipment is purchased for a list price of $10,000 with terms 2/10 n30. A shipping cost of $560 is charged on the sale. All amounts are subject to HST of 15%. The equipment's cost is $___________.

(d) On January 2, 2019, a machine costing $200,000 was acquired. The machine had a residual value of $30,000, and an estimated useful life of eight years. The company elected to depreciate the machine using the straight-line method. Prepare the journal entry to record the sale of the machine on December 1, 2020 for $110,000 cash.