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11111nata11111 [884]
4 years ago
15

Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years

or 30,000 hours. Using straight-line depreciation, calculate depreciation expense for the second year.
Business
1 answer:
Igoryamba4 years ago
3 0

Answer:

$30,000

Explanation:

The computation of the depreciation expense for the second year using the straight line method is shown below:

As we know that

= (Original cost - residual value) ÷ (useful life)

= ($90,000) ÷ (3 years)  

= $30,000

In this method, the depreciation is the same for all the remaining useful life

Hence, the second year depreciation expense is $30,000

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A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000. Journalize the redemption o
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Answer:

The Journal entry is as follows:

Bonds payable A/c Dr. $375,000

   To Discount on Bonds payable            $40,000

   To Gain on redemption of the bonds   $15,000

   To Cash                                                   $320,000

(To record the redemption of the bonds)

Workings:

Gain on redemption of the bonds:

= Bonds payable - Discount on Bonds payable - Cash

= $375,000 - $40,000 - $320,000

= $15,000

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Explanation:

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Answer:

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Explanation:

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