answer in text form please (without image) Kingbird AG purchased a new plant asset on April 1, 2022, at a cost of €954,000. It was estimated to have a service life of 20 years anda residual value of €78,720. Kingbird' accounting period is the calendar year.(a)Your Answer Correct AnswerYour answer is correct.Compute the depreciation for this asset for 2022 and 2023 using the sum-of-the-years-digits method. (Round answers to O decimalplaces, e.g. 45,892.)Depreciation for 2022Depreciation for 2023 €(b)eTextbook and MediaSolution* Your answer is incorrect.Compute the depreciation for this asset for 2022 and 2023 using the double-declining-balance method. (Round answers to Odecimal places, e.g. 45,892.)Depreciation for 2022 €Depreciation for 2023 €95400Attempts: 2 of 2 used85860

Name: answer in text form please (without image) Kingbird AG purchased a new
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Description: answer in text form please (without image) Kingbird AG purchased a new plant asset on April 1, 2022, at a cost of €954,000. It was estimated to have a service life of 20 years anda residual value of €78,720. Kingbird' accounting period is the calenda

The sum of year's digits approach is a finance and accounting strategy for allocating an asset's…

Business

Accounting

* Your answer is incorrect. Compute the depreciation for this asset for 2022 and 2023 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2022 € Depreciation for 2023 € 95400 85860

* Your answer is incorrect. Compute the depreciation for this asset for 2022 and 2023 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2022 € Depreciation for 2023 € 95400 85860

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Metlock Company purchased a new plant asset on April 1, 2020, at a cost of $741,000. It was estimated to have a service life of 20 years and a salvage value of $56,400. Metlock’ accounting period is the calendar year. (a) Your Answer Correct Answer Partially correct answer icon Your answer is partially correct. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2020 $enter a dollar amount Depreciation for 2021 $enter a dollar amount eTextbook and Media Assistance Used Solution Assistance Used 20 (20 + 1) = 210 2 9/12 x 20/210 x ($741,000 – $56,400) = $48,900 for 2020 3/12 x 20/210 x ($741,000 – $56,400) = $16,300 + 9/12 x 19/210 x ($741,000 – $56,400) = 46,455 $62,755 for 2021 Attempts: 9 of 9 used (b) Compute…
Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a useful life of 20 years and a salvage value of $60,000. Judd's accounting period is the calendar year. required A. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years’-digits method. B. Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.
On January 1, 2022, Proton Company purchased a new machine for P2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be P75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Proton's statement of financial position at December 31, 2024, net of accumulated depreciation, for this machine? O P1,695,000 O P1,335,000 O P1,020,000 O P1,244,250
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Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year. Instructions a. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years’-digits method. b. Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.
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Novak Company purchased a piece of equipment at the beginning of 2022. The equipment cost $402,120. It has an estimated service life of 8 years and an expected salvage value of $74,160. The sum-of-the-years-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $36,440 will be depreciated for a particular calendar year. Determine for what particular year the depreciation amount for this asset will be $36,440. Year of depreciation
Vaughn Company purchased a new machine on September 1, 2022, at a cost of $134,000. The company estimated that the machine will have a salvage value of $13,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Compute the depreciation expense under the Straight-line method for 2022, 2023, and 2024. (Round answers to O decimal places, eg. 15250) Depreciation expense for: 2022 $ (b) Your answer is correct. 2023 (c) $ 2024 $ eTextbook and Media List of Accounts Your answer is correct. eTextbook and Media Compute the depreciation expense under the Units-of-activity for 2022, assuming machine usage was 830 hours. List of Accounts Depreciation expense for 2022 $ 8067 Depreciation expense for: 2022 $ 24200 2023 $ 24200 2024 $ Attempts: 1 of 3 used 10043 Compute the depreciation expense under the Declining-balance using double the straight-line rate for 2022, 2023, and 2024. (Round answers to 0 decimal places, eg. 15250) Attempts: 1 of 3 used
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