Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. Blossom estimates the machine's useful life will be five years or 6,118 units with a residual value of $87,910. Assume the machine produces the following numbers of units each year: 893 units in 2021; 1,448 units in 2022; 1,426 units in 2023; 1,222 units in 2024 and 1,129 units in 2025. Blossom has a December 31 year end. (a) Your Answer Correct Answer (Used) Your answer is correct. Determine the cost of the machine.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for
delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid
$7,580 for installation and testing of the machine. The machine was ready for use on April 30.
Blossom estimates the machine's useful life will be five years or 6,118 units with a residual value of $87,910. Assume the machine
produces the following numbers of units each year: 893 units in 2021; 1,448 units in 2022; 1,426 units in 2023; 1,222 units in 2024;
and 1,129 units in 2025. Blossom has a December 31 year end.
(a)
Your Answer
Correct Answer (Used)
Your answer is correct.
Determine the cost of the machine.
sessment-player/index.html?launchid-061b09d5-7a2c-4201-8697-0b79ec3cfa95#
k
Transcribed Image Text:Current Attempt in Progress Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. Blossom estimates the machine's useful life will be five years or 6,118 units with a residual value of $87,910. Assume the machine produces the following numbers of units each year: 893 units in 2021; 1,448 units in 2022; 1,426 units in 2023; 1,222 units in 2024; and 1,129 units in 2025. Blossom has a December 31 year end. (a) Your Answer Correct Answer (Used) Your answer is correct. Determine the cost of the machine. sessment-player/index.html?launchid-061b09d5-7a2c-4201-8697-0b79ec3cfa95# k
Your answer is partially correct.
080
Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to 2
decimal places. Round answers to 0 decimal places, e.g. 5,275.)
(1) Straight-line method
Depreciable Amount
287,310
287,310
287,310
287,310
287,310
287,310
$
Depreciation Expense
zion.wiley.com/was/ui/v2/assessment-player/index.html?launchid=061b09d5-7a2c-4e01-8697-0b79ec3cfa95#
a
F8
38,308
57,462
57,462
57,462
57,462
19.154
F9
Accumulated Depreciation
$
Ma
F10
38,308
95.770
153,232
210,694
268,156
287,310
$
F12
1 Scr Lk
Carrying Amount
PrtSc
SysRa
Pause
Transcribed Image Text:Your answer is partially correct. 080 Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to 2 decimal places. Round answers to 0 decimal places, e.g. 5,275.) (1) Straight-line method Depreciable Amount 287,310 287,310 287,310 287,310 287,310 287,310 $ Depreciation Expense zion.wiley.com/was/ui/v2/assessment-player/index.html?launchid=061b09d5-7a2c-4e01-8697-0b79ec3cfa95# a F8 38,308 57,462 57,462 57,462 57,462 19.154 F9 Accumulated Depreciation $ Ma F10 38,308 95.770 153,232 210,694 268,156 287,310 $ F12 1 Scr Lk Carrying Amount PrtSc SysRa Pause
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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