have to provide equations for each entry as well!! On Jan 1, 2024...
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have to provide equations for each entry as well!!
On Jan 1, 2024 VN Inc. ("VNI") purchased a new "Bitcoin Mining Technology" computer. The computer costed $130,000 to purchase and it was purchased with cash. The computer will have a useful life that is based upon the hours it is operated. Based upon the manufacturer the computer will last 26,000 hours and at that time the technology will be outdated. VNI has done some estimates and has come up with the following usage: VNI knows they can't run the computer for 26,000 hours over the next 3 years, and instead can only run it for 24,000 hours due to maintenance that needs to occur. As they are only running the computer for 24,000 hours VNI will be able to sell some of the parts of the computer for $10,000 in 2027 (hence once the computer is no longer usable). Based upon their analysis VNI determined the average usage \% per years is 45% VNI is unsure how to expense this asset and needs your help. Current: - Determine the accounting entries for the purchase and depreciation of the computer for each of the following methods of depreciation. Future: - Assume on Jan 10, 2027 VNI can sell the computer for $8,000. Determine the journal entry to record the sale. Required - Complete the above using each of the depreciation methods provided below for 2024, 2025, 2026 and 2027: a) Journal Entries - Straight-line b) Journal Entries - Declining balance c) Journal Entries - Activity
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