Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Spoiled Baby Corporation sells baby buggies and has started an equipment replacement project. You are required to find out the Book Value of each of its fixed assets and make decisions regarding the purchases, trades and disposition of different assets. 

Point out your recommendation and validate your position for each of the given events.

1) SPC bought a tube extruder on April 3, 2007 for $27,000. It consists of a useful life of 10 years and a residual value of $4,000. SPC used double declining the balance depreciation for this asset. On February 19, 2012 SPC has an offer to sell this unit for 8,000. 

2) SPC purchased a winding machine on July 28, 2012 for $21,000. It consists of a useful life of 6 years or 12,000 hours. It consists of a residual value of $3,000. SPC is unsure whether to use straight line depreciation or units of production. This anticipates by using the equipment around 3000 hours each year. 

3) SPC purchased a funneling machine on the February 9, 2009 for $72,000.  It consists of a useful life of 5-years and a residual value of $12,000. SPC has utilized Straight line depreciation for this equipment. SPC has found out that this equipment no longer meets its requirements and has decided to exchange this unit for a new model. The new Model consists of a MSRP of $100,000. On December 28, 2012 SPC will exchange its equipment for the new Model and pay $77,000. 

4) SPC consists of a fully piece of equipment which is presently completely depreciated on its books. This equipment is no longer used and SPC wants to get rid of it.  The cost of the equipment is $10,000. The company has been offered $300 for its parts.  Describe the journal entry which would record this transaction?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917650

Have any Question? 


Related Questions in Accounting Basics

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Question 1dollys best issued 200 shares of its 10 common

Question 1 Dolly's Best issued 200 shares of its $10 common stock in exchange for used packaging equipment with a fair market value of $2,400. The entry to record the acquisition of the equipment would include a A. debit ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

Attn super geek onlythe sarbanes-oxley act of 2002 sox was

ATTN: Super Geek Only The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange ...

Accounting paper1each person will write a 3 page paper

Accounting Paper 1. Each person will write a 3 page paper, single spaced, one inch margins, 12 pt font with double space between paragraphs. 2. You will also be required to include the Income Statement, Balance Sheet and ...

Assignmentair france-klm af a franco-dutch company prepares

Assignment Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year ended Decemb ...

Accounting assignmentthree personal trainers at an upscale

Accounting Assignment Three personal trainers at an upscale health spa / resort in Sedona, Arizona, want to start a health club that specializes in health plans for people in the 50+ age range. The trainers Donna Rinaldi ...

Discussion questions 1 and 2dq 1 accounting equationas you

Discussion Questions 1 and 2 DQ #1: Accounting Equation As you have learned in this week's readings, the Accounting Equation is Assets = Liabilities + Owners' Equity. Is the accounting equation true in all instances? Pro ...

Problem -the stay healthy medical clinics balance sheet on

Problem - The Stay Healthy Medical Clinic's Balance sheet on December 31, 2014 showed an owner's equity of $1,280,000. The December 31, 2015 balance sheet showed an owner's equity of $1,520,000. During the year, the owne ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen