ustion10 Pins Nanki equipwmenton January 1 2016 for S640000

ustion&10 Pins Nanki ? equipwmenton January 1, 2016, for S640.000 In 2016 and 2017. annet on a straight-line hasis with an estimated useful life of ten years and Corporation purchased a 51,00esidual value In 2018 due to changes in technology, Nanki revised the useful life to a lotal of eight years with no residual value What depreciation would Nanki record for the year 2018 on this equigment show the jourmal entry to record the depreciation? Corporation reported the following information at year-end Bok Value 5 500,000 5 45.000 5 40,000 Estimated Cash Flows 380,000 s 40,000 38.000 S 120,000 Fair Value S 360,000 38.000 S 39.000 S 85,000 Wh is the of t loss that Alou should record at year end? Prip yo rced the impairment loss for the building and machine only

Solution

Solution 3:

Cost of Equipment = $640,000

Residual value = $10,000

Original estimated life = 10 years

Annual depreciation (SLM) for 2016 and 2017 = ($640,000 - $10,000) / 10 = $63,000 each year

Book value at the end of 2017 = $640,000 - $126,000 = $514,000

Revised total estimated life = 8 years

Remaining useful life = 8-2 = 6 years

Depreciation to be recorded for 2018 = $514,000 / 6 = $85,667

Note: As multiple questions are posted, i have answered first question as per chegg policy, kindly post separate question for answer of remaining questions.

Journal Entries
Event	Particulars	Debit	Credit
a.	Depreciation Expense Dr	$85,667.00
	To Accumulated Depreciation - Equipment		$85,667.00
	(To record depreciation expense)