Please show all calculations so I can better understand this
1. A machine was purchased for $360,000 on January 1, 2013. It has an estimated useful life of ten years and an estimated residual value of $28,000. Depreciation for 2014, using the double declining-balance method, is $_____________.
2. On January 3, 2014, a vehicle was purchased for $25,000. It has an estimated useful life of five years and a residual value of $1,900. It is expected to be driven 210,000 kilometers over its useful life. The asset was driven 30,000 kilometers in the second year. Depreciation for the second year, using the units-of-production method is $______________.
3. On January 2, 2012, a machine costing $144,000 was acquired. The machine had a residual value of $24,000, and an estimated useful life of five years. The company elected to depreciate the machine using the straight-line method. This asset is sold for $50,000 at the end of the second year of use. The gain or loss on the disposal is $___________. In addition, please prepare the journal entry required to record the sale of this asset.
1. A machine was purchased for $360,000 on January 1, 2013. It has an estimated useful life of ten years and an estimated residual value of $28,000. Depreciation for 2014, using the double declining-balance method, is $______57600_______.
Woeking notes for the above answer is as follow
| Price | Life -year | Residual Value | |
| Jan-13 | 360,000 | 10 | 28000 |
| Depreciation Schedule | |||||
| Year | Book Value | Depreciation | Depreciation | Accumulated | Book Value |
| Year Start | Percent | Expense | Depreciation | Year End | |
| 2013 | $360,000 | 20.00% | $72,000 | $72,000 | $288,000 |
| 2014 | $288,000 | 20.00% | $57,600 | $129,600 | $230,400 |
| 2015 | $230,400 | 20.00% | $46,080 | $175,680 | $184,320 |
| 2016 | $184,320 | 20.00% | $36,864 | $212,544 | $147,456 |
| 2017 | $147,456 | 20.00% | $29,491 | $242,035 | $117,965 |
| 2018 | $117,965 | 20.00% | $23,593 | $265,628 | $94,372 |
| 2019 | $94,372 | 20.00% | $18,874 | $284,503 | $75,497 |
| 2020 | $75,497 | 20.00% | $15,099 | $299,602 | $60,398 |
| 2021 | $60,398 | 20.00% | $12,080 | $311,682 | $48,318 |
| 2022 | $48,318 | 20.00% | $9,664 | $321,345 | $38,655 |
2. On January 3, 2014, a vehicle was purchased for $25,000. It has an estimated useful life of five years and a residual value of $1,900. It is expected to be driven 210,000 kilometers over its useful life. The asset was driven 30,000 kilometers in the second year. Depreciation for the second year, using the units-of-production method is $________3300______.
| Price | Life -year | Residual Value | |
| Jan -3-2014 | 25,000 | 5 | 1900 |
| Depriciation= | 25000-1900/ 210,000 |
=0.11 Per kilomerter
The asset was driven 30,000 kilometers in the second year.
so depriciation for the second year is
= 30,000 k.m. * 0.11 per k.m
=3300
3. On January 2, 2012, a machine costing $144,000 was acquired. The machine had a residual value of $24,000, and an estimated useful life of five years. The company elected to depreciate the machine using the straight-line method. This asset is sold for $50,000 at the end of the second year of use. The gain or loss on the disposal is $_____46,000______. In addition, please prepare the journal entry required to record the sale of this asset.
S
| Price | Life -year | Residual Value | |
| Jan -2-2012 | 144,000 | 5 | 24000 |
| Depreciation Schedule | ||||
| Year | Book Value | Depreciation | Accumulated | Book Value |
| Year Start | Expense | Depreciation | Year End | |
| 2012 | $144,000 | $24,000.00 | $24,000 | $120,000 |
| 2013 | $120,000 | $24,000.00 | $48,000 | $96,000 |
Value of Machinery at the 2nd year is $ 96,000 and it is sold for 50,000 , so loss on the sale of machinery is as follow
loss = Sale price – W.D.v.
= $ 50,000 – $ 96,000
= $ 46,000
