Golden Sales Has Bought $135,000 in Fixed Assets on January

question 139

Essay

Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The residual value of these assets is estimated at $10,000 after they service their 4 year service life. Golden Sales managers want to evaluate the options of depreciation.
(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be posted at the end of each of the years.
(b) Write the journal entries for each year of the service life for these assets using the double- declining balance method.

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Definitions:

Corporate Codes

Voluntary guidelines or principles adopted by corporations to govern their conduct in areas such as labor practices, ethics, and environmental performance.

Labor Exploitation

The unfair treatment of workers, often through inadequate wages, poor working conditions, and excessive working hours, without proper compensation or rights protection.

Multinational Corporations

Companies that operate in various countries around the world, managing production or delivering services in more than one country.

Globalization

Globalization is the process of increased interconnectedness and interdependence of the world's economies, cultures, and populations, facilitated by trade, investment, and information technology.