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At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Expense Net Book Value Depreciation Required A Required B Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000

At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Expense Net Book Value Depreciation Required A Required B Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Net Book Expense Depreciation Value Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000
Transcribed Image Text:At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Net Book Expense Depreciation Value Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000
At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Use the straight-line method to prepare a depreciation schedule. Depreciation Accumulated Net Book Expense Depreciation Value Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 26,800 $ 19,200 $ 11,600 $ 7,600 $ 7,600 $ 7,600 $ 7,600 $ 26,800 19,200 11,600 4,000 11
Transcribed Image Text:At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Use the straight-line method to prepare a depreciation schedule. Depreciation Accumulated Net Book Expense Depreciation Value Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 26,800 $ 19,200 $ 11,600 $ 7,600 $ 7,600 $ 7,600 $ 7,600 $ 26,800 19,200 11,600 4,000 11
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