Please Correct Solution with Explanation and Do not Give image Format Otherwise Give Down vote At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost$32,400 but had to be overhauled (at a cost of $2,560) before it could be installed (at a cost of $1,280) and finally put intouse. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinerywas actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $520 in each year.The shelving cost $10,150 and was expected to last 5 years, with a residual value of $770. The forklift cost $18,450 andwas expected to last six years, with a residual value of $2,340.CP9-1 (Algo) Part 55. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the formula fordouble-declining-balance uses cost minus accumulated depreciation (not residual value).Double-declining-balanceYear 11Year 2 At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost$32,400 but had to be overhauled (at a cost of $2,560) before it could be installed (at a cost of $1,280) and finally put intouse. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinerywas actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $520 in each year.The shelving cost $10,150 and was expected to last 5 years, with a residual value of $770. The forklift cost $18,450 andwas expected to last six years, with a residual value of $2,340.CP9-1 (Algo) Part 66. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is requiredfor a transaction/event, select "No Journal Entry Required" in the first account field.)View transaction listJournal entry worksheetRecord the double-declining balance depreciation expense for the forklift foryear 2.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit

Name: Please Correct Solution with Explanation and Do not Give image Format
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Description: Please Correct Solution with Explanation and Do not Give image Format Otherwise Give Down vote At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost$32,400 but had to be overhauled (

Answer : 5. Depreciation expenses Rate of depreciation =1/ life * 2 Rate of depreciation = 1/6*2 =…

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Accounting

5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $520 in $10,150 and was expected to last 5 years, with a residual value of $770. The for ast six years, with a residual value of $2,340. 5 lining balance depreciation expense for years 1 and 2 for the forklift. TIP: Remem