Ocean Fishers Ltd had a foot fishing boat with an inboard motor that was purchased on April for $ The PPE subledger shows the following information regarding the boat:
Fishing Boat Foot with Inboard Motor:
Component Date of Purchase Deprec.
Method Cost Est.
Residual Est.Life
Fibreglass body Apr. SL $ $ yr
Motor Apr. SL yr
$
On June $ cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of years and a residual value of $ Early in it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of years with no change in the residual value.
Required:
Record the appropriate entries regarding the
a Purchase of the replacement motor on June
b Depreciation taken on the fishing boat body plus motor on December the companys yearend. Do not round intermediate calculations and round final answers to whole dollars.
Calculate total depreciation taken on the fishing boat body plus motor for the companys year ended December Round the final answers to the nearest whole dollar.
