RIFT VALLEY UNIVERSITYDEPARTMENT OF ACCOUNTING AND FINANCEAssignment 1: Fundamentals of Accounting IIAssignment 1: Fundamentals of Accounting IIDate of Submission: January 27, 2022Date of Submission: January 27, 20221.A refrigerator used by a meat processor has a cost of $312,000, an estimated residualvalue of $42,000, and an estimated useful life of 15 years. What is the amount of theannual depreciation computed by the straight-line method?2.A backhoe acquired on January 5 at a cost of $84,000 has an estimated useful life of 12years. Assuming that it will have no residual value, determine the depreciation for each ofthe first two years (a) by the straight-line method and (b) by the declining-balancemethod, using twice the straight-line rate. Round to the nearest dollar3.Jacobs Company replaced carpeting throughout its general offices. The old carpet wasremoved at a cost of $1,500 on March 15. The book value of the old carpet was $6,000 onMarch 15 ($18,000 original cost less $12,000 accumulated depreciation) .New carpetswas purchased and installed during the last two weeks of March for a total cost of$45,000. The carpet is estimated to have a 15-year useful life.a. Record the cost of removing the old carpet.b. Prepare the journal entries necessary for recording the replacement of the old carpetwith the new carpet.
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