Copper Corporation bought a machine for $84,000 cash. The estimated useful lile was five years and the estimated residual value was $9,000. Assume that the estimated useful life in productive units is 177,000. Units actually produced were 47,200 in year-1 and 53,100 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?
Copper Corporation bought a machine for $84,000 cash. The estimated useful lile was five years and the estimated residual value was $9,000. Assume that the estimated useful life in productive units is 177,000. Units actually produced were 47,200 in year-1 and 53,100 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please answer all 3 requirements
![Copper Corporation bought a machine for $84,000 cash. The estimated useful life
was five years and the estimated residual value was $9,000. Assume that the
estimated useful life in productive units is 177,000. Units actually produced were
47,200 in year-1 and 53,100 in year 2.
Required:
1. Determine the appropriate amounts to complete the following schedule.
2-a. Which method would result in the lowest net income for year 1?
2-b. Which method would result in the lowest net income for year 2?
3. Which method would result in the lowest fixed asset turnover ratio for year 1?
Complete this question by entering your answers in the tabs below.
Reg 1
Req 2A
Req 28
Req 3
Determine the appropriate amounts to complete the following schedule. (Do not round i
answers to the nearest whole dollar.)
Depreciation Expense
Year 2
Book Value at the End of
Method of Depreciation
Year 1
Year 1
Year 2
Straight-line
Units-of-production
Double-declining-balance
Req 2A >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e32f66d-09c4-42e8-ae49-7bf524a7c65f%2F1bd23d1e-8b76-47bb-8060-6f2dd76b4484%2F5vxx6vu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Copper Corporation bought a machine for $84,000 cash. The estimated useful life
was five years and the estimated residual value was $9,000. Assume that the
estimated useful life in productive units is 177,000. Units actually produced were
47,200 in year-1 and 53,100 in year 2.
Required:
1. Determine the appropriate amounts to complete the following schedule.
2-a. Which method would result in the lowest net income for year 1?
2-b. Which method would result in the lowest net income for year 2?
3. Which method would result in the lowest fixed asset turnover ratio for year 1?
Complete this question by entering your answers in the tabs below.
Reg 1
Req 2A
Req 28
Req 3
Determine the appropriate amounts to complete the following schedule. (Do not round i
answers to the nearest whole dollar.)
Depreciation Expense
Year 2
Book Value at the End of
Method of Depreciation
Year 1
Year 1
Year 2
Straight-line
Units-of-production
Double-declining-balance
Req 2A >
![Which method would result in the lowest net income for year 1?
Straight-line
OUnits-of-production
Double-declining-balance
< Req 1
Req 2B >
Which method would result in the lowest net income for year 2?
ODouble-declining-balance
OStraight-line
OUnits-of-production
< Req 2A
Req 3 >
Which method would result in the lowest fixed asset turnover ratio for year 1?
Units-of-production
Double-declining-balance
Straight-line
< Req 2B
Reg 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e32f66d-09c4-42e8-ae49-7bf524a7c65f%2F1bd23d1e-8b76-47bb-8060-6f2dd76b4484%2Fj42plnd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which method would result in the lowest net income for year 1?
Straight-line
OUnits-of-production
Double-declining-balance
< Req 1
Req 2B >
Which method would result in the lowest net income for year 2?
ODouble-declining-balance
OStraight-line
OUnits-of-production
< Req 2A
Req 3 >
Which method would result in the lowest fixed asset turnover ratio for year 1?
Units-of-production
Double-declining-balance
Straight-line
< Req 2B
Reg 3
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