Description of this paper

ACC - Acme Corp. bought a machine

Description

solution


Question

Question;Question # 3 (show your steps) Acme Corp. bought a machine for $350,000 cash on August 1, 2012. It is expected to last for 10 years with a residual value of $35,000. A new base costing $20,000 was installed at the time of acquisition. Acme Corp's year end is December 31st. Requirement #1 - Using the double declining balance method and fractional year monthly amortization, answer the following questions: What is the Depreciation expense in year 2012: What is the Depreciation expense in year 2013: Requirement #2 - Using the straight line method and half year amortization for the year of acquisition and disposal, answer the following questions: What is the Depreciation expense in year 2012: What is the Depreciation expense in year 2013: Requirement #3 - Using the information from Requirment 2, prepare the journal entry to record the disposition of the asset for $250,000 cash on February 25, 2014.

 

Paper#38957 | Written in 18-Jul-2015

Price : $21
SiteLock