5 Part 2 of 6 eBook Print Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 2 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense Check my work
5 Part 2 of 6 eBook Print Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 2 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense Check my work
Chapter1: Financial Statements And Business Decisions
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Part 2 of 6
eBook
Print
Required information
CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost
$26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into
use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery
was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.
The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and
was expected to last six years, with a residual value of $2,060.
CP9-1 (Algo) Part 2
2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.)
Year 2 units-of-production depreciation expense
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f6aff1d-ed5c-48e3-bf3e-79ca313596be%2Fd7595745-0942-41c8-84fb-b1a7211b5bb8%2Fdx7cawx_processed.png&w=3840&q=75)
Transcribed Image Text:5
Part 2 of 6
eBook
Print
Required information
CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost
$26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into
use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery
was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.
The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and
was expected to last six years, with a residual value of $2,060.
CP9-1 (Algo) Part 2
2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.)
Year 2 units-of-production depreciation expense
Check my work
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