A machine that produces cellphone components is purchased on January 1, 2024, for $163,000. It is expected to have a useful life of four years and a residual value of $11,000. The machine is expected to produce a total of 200,000 components during its life, distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year end. (a) Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation $ per year ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to O decimal places, e.g. 125.)
A machine that produces cellphone components is purchased on January 1, 2024, for $163,000. It is expected to have a useful life of four years and a residual value of $11,000. The machine is expected to produce a total of 200,000 components during its life, distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year end. (a) Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation $ per year ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to O decimal places, e.g. 125.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A machine that produces cellphone components is purchased on January 1, 2024, for $163,000. It is expected to have a useful life of
four years and a residual value of $11,000. The machine is expected to produce a total of 200,000 components during its life,
distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year
end.
(a)
Calculate the amount of depreciation to be charged each year, using each of the following methods:
i. Straight-line method
Straight-line method depreciation $
I per year
ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to O decimal
places, e.g. 125.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac654068-ac4e-46e0-b12c-06f8b9543db8%2F41ec3cdc-daa3-4e3a-ba3b-64d50f1a20d3%2F762gebt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A machine that produces cellphone components is purchased on January 1, 2024, for $163,000. It is expected to have a useful life of
four years and a residual value of $11,000. The machine is expected to produce a total of 200,000 components during its life,
distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year
end.
(a)
Calculate the amount of depreciation to be charged each year, using each of the following methods:
i. Straight-line method
Straight-line method depreciation $
I per year
ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to O decimal
places, e.g. 125.)
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