Skip to main content

(a)James Company bought equipment for $460,000 on 22 February 20Y1.The

By December 6, 2021No Comments

(a)James Company bought equipment for $460,000 on 22 February 20Y1.Themachine had an estimated residual value of $60,000,and had estimated useful life of 10years,or had an estimated operation output of 100,000 hours.The year-end date of thecompany is 31 December.Calculate the depreciation on the equipment in these twoyears using the following methods.20Y120Y2(i)Straight-line (using half-year convention)$$(ii)200%-declining-balance(using full-year$depreciation in the first year)(iii)Units-of-output method (hours of operation:$10,000in20Y1;12,000in20Y2)(b)Solar Company purchased equipment for $27,000 on 1 July 20X1.TheCompany depreciated the equipment over a five-year life by the150%-declining-balance method on monthly basis and its residual value was $3,000.Until the end of the second year at 31 December 20X2,the Company sold theequipment for $12,500.Assuming the Company adjusts its accounts annually,prepare the necessary journal entries required to update the depreciation for thesecond year and to dispose the said equipment.

题目答案请扫描下方二维码查看。

deleted-XciBPmZ3

Author deleted-XciBPmZ3

More posts by deleted-XciBPmZ3

Leave a Reply