Depreciation for Lockhard Company BE 11-2 11-3 11-4 11-8
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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 information for Lockard Company given in BE11-2. (a) Compute 2010 depreciation expense using the sum-of-the-years-digits method. (b) Compute 2010 depreciation expense using the sum-of-the-years-digits method assuming the machinery was purchased on April 1, 2010.
BE11-4 Use the information for Lockard Company given in BE11-2. (a) Compute 2010 depreciation expense using the double-declining-balance method. (b) Compute 2010 depreciation expense using the double-declining-balance method assuming the machinery was purchased on October 1, 2010.
BE11-8 Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000. Prepare the journal entry to record depletion.
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Solution Summary
Your response is in excel and shows you the formulas & the computations for straight-line, sum-of-the-years-digits and double-declining balance methods of depreciation, including pro-rating for partial years. The journal entry required and includes tips and notes to assist you in understanding the impairment test and impairment loss entry is included.
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Your response is in excel and shows you the formulas & the computations for ...
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