ustion&10 Pins Nanki ? equipwmenton January 1, 2016, for S640.000 In 2016 and 20
ID: 2393580 • Letter: U
Question
ustion&10 Pins Nanki ? equipwmenton January 1, 2016, for S640.000 In 2016 and 2017. annet on a straight-line hasis with an estimated useful life of ten years and Corporation purchased a 51,00esidual value In 2018 due to changes in technology, Nanki revised the useful life to a lotal of eight years with no residual value What depreciation would Nanki record for the year 2018 on this equigment show the jourmal entry to record the depreciation? Corporation reported the following information at year-end Bok Value 5 500,000 5 45.000 5 40,000 Estimated Cash Flows 380,000 s 40,000 38.000 S 120,000 Fair Value S 360,000 38.000 S 39.000 S 85,000 Wh is the of t loss that Alou should record at year end? Prip yo rced the impairment loss for the building and machine onlyExplanation / Answer
Solution 3:
Cost of Equipment = $640,000
Residual value = $10,000
Original estimated life = 10 years
Annual depreciation (SLM) for 2016 and 2017 = ($640,000 - $10,000) / 10 = $63,000 each year
Book value at the end of 2017 = $640,000 - $126,000 = $514,000
Revised total estimated life = 8 years
Remaining useful life = 8-2 = 6 years
Depreciation to be recorded for 2018 = $514,000 / 6 = $85,667
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Journal Entries Event Particulars Debit Credit a. Depreciation Expense Dr $85,667.00 To Accumulated Depreciation - Equipment $85,667.00 (To record depreciation expense)Related Questions
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