Which depreciation method is most commonly used among publicly owned corporations quizlet?
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period. In addition, Harvard paid a $160 delivery charge, $185 installation charge, and $931 sales tax. The amount recorded as the cost of this equipment is: Land and a warehouse were acquired for $890,000. What amounts should be recorded in the accounting records for the land and for the warehouse if an appraisal showed the estimated values to be $400,000 for the land and $700,000 for the warehouse? A. $400,000 for land; $490,000 for warehouse. Land is purchased for $456,000. Additional costs include a $30,300 fee to a broker, a survey fee of $3,400, $2,750 to construct a fence, and a legal fee of $12,500. What is the cost of the land? Yale Company purchased equipment having an invoice price of $21,500. The terms of sale were 2/10, n/30, and Yale paid within the discount period. In addition, Yale paid a $320 delivery charge, $350 installation charge, and $1,183 sales tax. The amount recorded as the cost of this equipment is: A. $21,070. Machinery acquired new on January 1 at a cost of $80,000
was estimated to have a useful life of 10 years and a residual salvage value of $20,000. Straight-line depreciation was used. On January 1, following six full years of use of the machinery, management decided that the estimate of useful life had been too long and that the machinery would have to be retired after three years, that is, at the end of the ninth year of service. Under this revised estimate, the depreciation expense for the seventh year of use would be: On April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $160,000 with a residual value of $20,000 at the end of its estimated useful lifetime of 4 years. 121. Refer to the information above. Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this
equipment in 2014 and 2015 will be: On April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. Refer to the information above.
If Victor uses straight-line depreciation with the half-year convention, the book value of the equipment at December 31, 2015 will be: Total stockholders' equity of Tucker Company is $4,000,000. The fair market value of Tucker's net identifiable assets (assets less liabilities) is $5,000,000. Empire Corporation makes an offer to purchase Tucker's entire business for $5,800,000. In this
situation: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000,000. The mine was estimated to contain 200,000 tons of ore and to have a residual value of $5,000,000 after mining operations are completed. During the year, 105,000 tons of ore were removed from the mine. At year-end, the book value of the mine (cost minus accumulated depletion) is: In February 2015, Brilliant Industries purchased the Topaz Mine at a cost of $10,000,000. The mine is estimated to contain 500,000 carats of stone and to have a residual value of $500,000 after mining operations are completed. During 2015, 50,000 carats of stone were removed from the mine and sold. In this situation: Early in the current year, Amazon Co. purchased the Rio Silver Mine at a cost of $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are completed. During the year,
115,000 tons of ore were removed from the mine. At year-end, the book value of the mine is: In February 2015, Gemstone Industries purchased the Opal Mine at a cost of $20,000,000. The mine is estimated to contain 500,000 carats of stone and to have a residual value of $1,000,000 after mining operations are completed. During 2015, 50,000 carats of stone were removed from the mine
and sold. In this situation: Which depreciation method is most commonly used among publicly owned corporation?As mentioned above, the straight-line method or straight-line basis is the most commonly used method to calculate depreciation under GAAP.
Which depreciation method is most frequently used in businesses today quizlet?Which depreciation method is most frequently used in businesses today? systematic and rational manner.
Which of the following are commonly used depreciation methods?The most common depreciation methods include:. Straight-line.. Double declining balance.. Units of production.. Sum of years digits.. Which method of depreciation is used by most US companies for financial reporting purposes?Straight‐line depreciation is the method that companies most frequently use for financial reporting purposes. If straight‐line depreciation is used, an asset's annual depreciation expense is calculated by dividing the asset's depreciable cost by the number of years in the asset's useful life.
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