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Allocation of purchase price; depreciation recapture on sale

Jessica purchased a business from Laura. The sale included permit, goodwill, a building, fixtures in the building, and account receivable. In what order are the assets assigned values to determine Jessica's basis in each asset A. Goodwill, then permits, then account receivable, then building and fixtures B. Accounts receivab

Depreciation for Excel Delivery and Allegheny Corporation

E 11-1. On January 1, 2011, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Required Calculate annual depreciation for the van usi

Straight Line Depreciation

E 11-21 in 2011, internal auditors discovered that PKE Displays Inc. has debited an expense account for $350,000cost of a machine purchased on January 1, 2008. The machine's life was expected to be five years with no residual value. Straight line depreciation is used by PKE. Required 1. Prepare the appropriate correcting ent

Alladin Company Depreciation for Partial Period (SL, SYD and DDB)

Alladin Company purchased Machine #201 on May 1, 2010. The following information relating to Machine #201 was gathered at the end of May. Price.............................................................................$85,000 Credit terms..............................................................2/10, n/30 Freight-in c

Depreciation using reducing balance

I have a question in a text book and not sure how they worked the answer out, I seem to get the incorrect answer when doing the example, unless the text is wrong...which could be possible. Please show workings and explain. Question relates to J blog, public accountant, for 6 months ending 31 December 2018 Trial Balance a

depreciation deductions

Rona Inc is a developer. During the year, the corporation finished construction of a complex containing a new shopping mall and office building. To enhance the environment of the complex, substantial landscaping was done including the planting of many trees, shrubs and gardens. In addition, Rona Inc acquired a massive sculpture

Wilson Corporation began operations in January 2008, and purchased a machine for $20,000. Wilson uses straight-line depreciation over a four-year period for financial reporting purposes.

Wilson Corporation began operations in January 2008, and purchased a machine for $20,000. Wilson uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2008, 30% in 2009, and 20% in 2010. Pretax accounting income for 2008 was $150,000, which inc


BE11-2 Lockard Company purchased machinery on January 1, 2010, for $8,000 after a useful life of 8 years. (a) Compute 2010 depreciation expense using the straight-line method. (b) Compute 2010 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2010. BE11-3 Use the informatio

Smart Hardware Depreciation and Print Technologies Asset

See the attachment. Must be done in Excel, the Excel Template 9.3A is attached for the problem. Case 9.1 Mickey Gillespie is the controller of Print Technologies, a publicly owned company. The company is experiencing financial difficulties and is aggressively looking for ways to cut costs. Susan Bedell, the CEO, instruc


1. A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold? A. $395. B. $410

Calculate depreciation in four different methods

Limestone Construction purchased a concrete mixer on July 15, 2011. Company officials revealed the following information regarding this asset and its acquisition: Purchase price....................$210,000 Residual value...................................$20,000 Estimated useful life...................................9

Total Cost Recovery and Depreciation for Greta and Julia

Greta, a calendar-year taxpayer, acquires 5-year tangible personal property in 2009 and places the property in service on the following schedule: Date placed in service Acquisition Cost January 15 $ 80,000 May 25 $300,000 November 8

Depreciation of new truck

BE11-1 Fernandez Corporation purchased a truck at the beginning of 2010 for $50,000. The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in 2010 and 31,000 miles in 2011, compute depreciation expense for 2010 and 2011.

Depreciation Methods: Units or groups having a composite life

The certified public accountant is frequently called upon by management for advice regarding methods of computing depreciation. Of comparable importance, although it arises less frequently, is the question of whether the depreciation method should be based on consideration of the assets as units, as a group, or as having a comp

I10-29 Sec. 179 Expensing and MACRS Depreciation

I10-29 Sec. 179 Expensing and MACRS Depreciation. Ted is in the rental real estate business. During 2009, Ted purchased and placed in service the following assets: * Apartment building costing $300,000 (exclusive of $80,000 land): Placed in service on May 12 with a 27.5-year MACRS recovery period. * Office furnitu

On Jan1, 2010 Pele co. purchased two machines for production process.

Accounting Principles 9th edition, ISBN 978-0470-31754-9, Weygandt Problem 10-3A but you need to do ONLY requirement B of the problem. On Jan1, 2010 Pele co. purchased two machines for production process. Machine A: Cash price was $38,000. Related expenditures include: sales tax $1700, shipping $150, shipping insurance

Identify depreciation methods

Moyle Co. acquired a machine on January 1, 2008, at a cost of $320,000. The machine is expected to have a five-year useful life, with a salvage value of $20,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual production was as follows: 60,000 units in 2008, 40,000 units in 2009, 80,000 units

Estimating goodwill and Depreciation Methods

E 9-4 On January 2, 2005, Jansing Corporation acquired a new machine with an estimated useful life of 5 years. The cost of the equipment was $40,000 with a residual value of $5,000. a. Prepare a complete depreciation table under the three depreciation methods listed below. Use a format similar to the illustrations in Exhibit


Attention: The equipment will be depreciated by the straight line method over the life of the project. The support is the answer from a book but the depreciation is not a straight line. I do not have time to it now. It can be a guide in case it be needed. Allied Food Products is considering expanding into the fruit jui

Sum of Digit & Declining Balance Method

50. On January 1, 2011, Carson Company purchased equipment at a cost of $570,000. The equipment was estimated to have a useful life of five years and a salvage value of $60,000. Carson uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2013? a. $340,000 b. $408

Compute depreciation using three methods for a $320,000 machine

A machine costing $320,000 with a four-year life and an estimated $33,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 512,500 units of product during its life. It actually produces the following units: year 1, 127,500; year 2, 129,000; year 3, 128,50

Effects of straight-line versus double declining-balance depreciation

Same Day Laundry Services purchased a new steam press January 1, for $35,000. It is expected to have a five-year useful life and a $3,000 salvage value. Same Day expects to use the steam more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming th