Question 15 Navajo Corporation traded a used truck( cost $ 23,600, accumulated depreciation $ 21,240) for a small computer worth $ 4,366. Navajo also paid $ 1,180 in the transaction. Prepare the journal entry to record the exchange.
Question 16 Mehta Company traded a used welding machine( cost $ 10,080, accumulated depreciation $ 3,360) for office equipment with an estimated fair value of $ 5,600. Mehta also paid $ 3,360 cash in the transaction. Prepare the journal entry to record the exchange.
Question 17 Depreciation is normally computed on the basis of the nearest A). full month and to the nearest dollar. B). day and to the nearest cent. C). day and to the nearest dollar. D). full month and to the nearest cent.
Question 18 Fernandez Corporation purchased a truck at the beginning of 2012 for $ 54,180. The truck is estimated to have a salvage value of $ 2,580 and a useful life of 206,400 miles. It was driven 29,670 miles in 2012 and 39,990 miles in 2013. Compute depreciation expense for 2012 and 2013.
Question 19 Lockhard Company purchased machinery on January 1, 2012, for $ 79,200. The machinery is estimated to have a salvage value of $ 7,920 after a useful life of 8 years.( a) Compute 2012 depreciation expense using the double-declining balance method.( b) Compute 2012 depreciation expense using the double-declining balance method assuming the machinery was purchased on October 1, 2012.
Question 20