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Ainat [17]
3 years ago
12

On December 31, 2020, Blossom Inc. has a machine with a book value of $1,034,000. The original cost and related accumulated depr

eciation at this date are as follows. Machine $1,430,000 Less: Accumulated depreciation 396,000 Book value $1,034,000 Depreciation is computed at $66,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Business
1 answer:
dangina [55]3 years ago
3 0

Answer:

A)

Loss on Fire          280,720 debit

Acc depreciation 506,000 debit

Cash                     643,280 debit

      Equipment                     1,430,000 credit

B)

Acc depreciation 526,000 debit

Cash                   1,555,480 debit

      Equipment                     1,430,000 credit

     Gain at disposal                608,480 credit

C)

charitable contribution     1,645,600 debit

accumulated depreciation 500,500 debit

       equipment                                1,430,000 credit

       gain on disposal                          716,100  credit

<u>Questions</u>

A Fire completely destroys the machine on August 31, 2021. An insurance settlement of $643,280 was received for this casualty. Assume the settlement was received immediately.

B On April 1, 2021, Tritt sold the machine for $1,555,840 to Dwight Yoakam Company.

C On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,645,600.

Explanation:

In all cases, the company will write-off the equipment and acc depreciation

A.-

complete depreciation for 2020: 66,000

depreciation until August 31th: 66,000 x 8/12 = 44,000

Total depreciation 104,000

book value 1,034,000 - 104,000 = 924,000

loss: 924,000 - 643,280 = 280,72‬0

b)

complete depreciation for 2020:                   66,000

depreciation until April 31th: 66,000 x 4/12 = 22,000

Total depreciation     88,000

book value 1,034,000 - 88,000 = 946,000

1,555,480 - 946,000  = 608,480

c)

complete depreciation for 2020:                  66,000

depreciation until July 31th: 66,000 x 7/12 = 38,500

Total depreciation                                          104,500

book value 1,034,000 - 104,500 =   929,500

gain: 1,645,600 - 929,500 = 716.100

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Explanation:

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Answer:

Differential cost

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You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an
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Answer:

The withdrawals will be of  $ 11,379.014 per month

Explanation:

Future value of the annuities:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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6 0
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