Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight-line for 2017 through to 2021. 2017 expense 2018 expense $ 2019 expense 2020 expense $ 2021 expense $ $ $

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight-line for 2017 through to 2021. 2017 expense 2018 expense $ 2019 expense 2020 expense $ 2021 expense $ $ $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9PA: For each of the following unrelated situations, calculate the annual amortization expense and...

See similar textbooks

Similar questions

QI-Aws Company purchases a factory machine at a cost of $18,000 on January 1, 2012. Aws expects the machine to have a salvage value (residual value) of $2,000 at the end of Its 4- year useful life. During its useful life, the machine is expected to be used 160,000 hours. Actual Annual hourly use was: 2012, 40,000; 2013, 60,000; 2014, 35,000; 2015, 25,000 Instructions a- Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of-production, and (c) declining-balance (DDB Method) b-Show the book value of the machine at the end of 2014 at the balance sheet c- Prepare the journal entries on 1/1/2012, 31/6/2014 Q2- On January 1, 2012, XYZ Co. purchased a car at a historical cost of $28,000. The car has been depreciated by the straight-line method using a 4-year useful life and a $4,000 salvage value (residual value). The company's financial year ends on December 31. Instructions Prepare the journal entry or entries to record the disposal (discard) of the car…
8. Hello Company purchases a factory machine at a cost of RO 36,000 on January 1, 2010. The company expects the machine to have a salvage value of RO 4,000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used 80,000 hours. Actual annual hourly use for each year was: 2010: RO 30,000; 2011: RO 20,000; 2012: RO 18,000; and 2013: RO 12,000. Prepare depreciation schedules for the following methods: a. Straight-line, b. units-of-activity, and c. declining balance method
Adams Company paid $92.000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resuited in the development of a new machine that costs $118,000. The old machine costs $59,000 per year to operate, but the new machine could be operated for only $9,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $40,000. The expected salvage value of both machines is zero. Required Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced? Keep Old Buy New Total avoidable costs Should the machine be replaced?
Winsey Company purchased equipment on January 2, 2019, for $700,000. The equip-ment has the following characteristics: Estimated service lifeLO 11.2 Estimated residual value20 years, 100,000 hours, 950,000 units of output $50,000During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.SHOW ME HOWRequired:Compute depreciation expense for 2019 and 2020 under each of the following methods: 1. straight-line method 2. activity method based on hours worked (round the depreciation rate per hour to 2 decimal places) 3. activity method based on units of output (round the depreciation rate per unit to 2 decimal places) 4. sum-of-the-years’-digits method 5. double-declining-balance method 6. 150%-declining-balance method 7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight-line,…
On 1 July 20X4, Experimenter opened a chemical reprocessing plant. The plant was due to be active for five years until 30 June 20X9, when it would be decommissioned. At 1 July 20X4, the costs of decommissioning the plant were estimated to be $4 million in 5 years’ time. The company considers that a discount rate of 12% is appropriate for the calculation of a present value, and the discount factor at 12% for Year 5 is 0.567. What is the total charge to the statement of profit or loss (depreciation and finance charge) in respect of the decommissioning for the year ended 30 June 20X5?
Subic Company purchased factory equipment on October 1, 2017 costing P960, 000. In view of pending technological developments it is estimated that the machine will have a resale value upon disposal in four and one half years of P70,000 and the disposal cost will be P10,000. Estimated useful life: Service hours. 8,000 Actual operations (machine was retired at end of four and one half years) hours. service hours 2017. 1,000 2000| 2018. Required: Compute depreciation expense for 2017 and 2018 using: a. Service hours depreciation b. SYD c. Straight Line d. DDP
A company has decided to replace its inspection machine with an advanced one. The advanced machine costs $15,000 and will have operating costs of $3,600 in the first year, increasing by $2,000 per year thereafter. The expected salvage value of the new machine is $6,000 at the end of the first year and will decline by 10% of the preceding S.V. each year. Find the missing values in the following table and determine the economic life of the new machine. Total Cost (8%) CR (8%) OC (8%) 3,600 1 10,200 13,800 2 ? ? ... .... .. 3 4332.36 5,495.82 ? 4 ? 6,406.46 ? .......... . 3086.31 7,293.42 10,379.73 OPTIMAL n = A+ta ch Cilo
A company is planning to purchase a machine that will cost P240,000, have a six-year life, and be depreciated over a six-year period with no salvage value. The company expects to sell the machine's output of 30,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? Sales Costs: P 900,000 Manufacturing P 520,000 Depreciation on machine 40,000 Selling and administrative expenses 300,000 (860,000 ) Income before taxes P 40,000 Income tax (25%) (10,000 ) Net income…
A company is considering buying a new bottle-capping machine. The initial cost of the machine is $1.2M and it has a 10-year life. Monthly maintenance costs are expected to be $2000 per month for the first 7 years and $2500 per month for the remaining years. The machine requires a major overhaul costing $100,000 at the end of the fifth year of service. Assume that all these costs occur at the end of the appropriate period. (a) What is the future value of all the costs of owning and operating this machine if the nominal interest rate is 9% compounded monthly? (b) Bottle caps are in the top 10 items found in beach cleanups. What are other items on such lists, and what are beach cities doing to reduce this debris?
Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $38,000 on January 1, 20Y1. The truck is expected to have a 5-year life with an expected residual value of $7,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are anticipated to be $66,000 per year for each of the next 5 years. A driver will cost $46,000 in 20Y1, with an expected annual salary increase of $4,000 for each year thereafter. The annual operating costs for the truck are estimated to be $2,000 per year. Year 1 2 3 4 5 6 7 8 9 10 20Y1 20Y2 20Y3 20Y4 Present Value of $1 at Compound Interest 6% 10% 12% 20Y5 0.943 0.890 0.840 Investment 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.909 0.826 0.751 0.683 0.621 Net present value 0.564 0.513 0.467 0.424 0.386 $ 0.893 0.797 0.712 0.636 $ $ 0.567 0.507 $ 0.452 Annual Net Cash Flow 0.404 0.361 0.322 15% 0.870 0.756 0.658 a. Determine the expected annual net cash flows from the delivery truck investment for…
A company is planning to purchase a machine that will cost 240,000, have a six-year life, and be depreciated over a six-year period with no salvage value. The company expects to sell the machine's output of 30,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? Sales Costs: 900,000 Manufacturing 520,000 Depreciation on machine 40,000 Selling and administrative expenses 300,000 (860,000) Income before taxes 40,000 Income tax (25%) (10,000) Net Income 30,000 Choices: 4% 8% 16.7% 25% 12.5%
A company is evaluating a possible replacement of an old machine that has been in use since it was purchased new for $40,000 on December 3, 2016. Today, however, the machine is worth $20,000. If this machine is kept, an engineer estimates that its Market Values will be $9,000 a year from now, and $8,000 two years from now. On the other hand, Operating and Maintenance Costs are expected to be $5,000 for the upcoming year (until December 3, 2022) and $6,100 for the year after (until December 3, 2023). MARR is 10%. (a) The Annual Equivalent Cost if the machine is kept for one year (i.e, until December 3, 2022) is $ (b) The Annual Equivalent Cost if the machine is kept for two years (.e, until December 3, 2023) is $ (C) The Economic Service Life of the machine is * year(s). NOTE: Please enter your answers to parts (a) and (b) to two decimal places.