[经济学]chater 9 accounting 111.pptVIP

Fixed Assets and Intangible Assets The End Depreciation for Federal Income Tax For the five-year-class assets, depreciation is spread over six years, as shown below. LO 2 Revising Depreciation Estimates A machine is purchased on January 1, 2011, for $140,000. LO 2 (continued) Revising Depreciation Estimates At the end of 2012, the asset’s book value is $88,000, as shown below. (continued) LO 2 Revising Depreciation Estimates During 2013, the company estimates that the machine’s remaining useful life is eight years (instead of three) and that its residual value is $8,000 (instead of $10,000). Depreciation expense for each of the remaining eight years is determined as follows: LO 2 (concluded) Learning Objective 3 Journalize entries for the disposal of fixed assets. Discarding Fixed Assets Equipment acquired at a cost of $25,000 is fully depreciation at December 31, 2011. On February 14, 2012, the equipment is discarded. LO 3 Note: The entry to record the disposal of a fixed asset removes the cost of the asset and its accumulated depreciation from the accounts. Discarding Fixed Assets Equipment costing $6,000, with no residual value, is depreciated at an annual straight-line rate of 10%. After the December 31, 2011, adjusting entry, Accumulated Depreciation—Equipment has a $4,750 balance. On March 24, 2012, the asset is removed from service and discarded. LO 3 Discarding Fixed Assets LO 3 $600 × 3/12 The discarding of the equipment is then recorded as shown below. (Note that this is the second of two entries on March 24.) Discarding Fixed Assets LO 3 Selling Fixed Assets Equipment was purchased at a cost of $10,000. It had no estimated residual value and was depreciated at a straight-line rate of 10%. The equipment is sold for cash on October 12 of the eighth year of its use. The balance of the accumulated depreciation account as of the preceding December 31 is $7,000. LO 3 Selling Fixed Assets LO 3 The entry to update the depreciation for the nine months of th