Culver Company shows the following entries in its Equipment account for 2018. All amounts are based on historical cost. Equipment 2018 2018 Jan. 1 Balance 127,740 June 30 Cost of equipment sold Aug. 10 Purchases 31,390 (purchased prior to 2018) 24,840 12 Freight on equipment purchased 720 25 Installation costs 2,930 Nov. 10 Repairs 480 Prepare correcting entry if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016. (Round answers to 0 decimal places, e.g. 45,892.) (1) Straight-line $ (2) Sum-of-the-years'-digits $ Click if you would like to Show Work for this question: Open Show Work Please answer all parts of my question

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Culver Company shows the following entries in its Equipment account for 2018. All amounts are based on historical cost.

Equipment
2018			2018
Jan. 1	Balance	127,740	June 30	Cost of equipment sold
Aug. 10	Purchases	31,390		(purchased prior to 2018)	24,840
12	Freight on equipment purchased	720
25	Installation costs	2,930
Nov. 10	Repairs	480

Prepare correcting entry if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016. (Round answers to 0 decimal places, e.g. 45,892.)

(1)		Straight-line		$
(2)		Sum-of-the-years'-digits		$

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Open Show Work

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