Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,600 units in 2021 and 2,050 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers to nearest whole dollar.) Depreciation Expense 2021 2022 < Required B 2023 2024 Required C > 2025
Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,600 units in 2021 and 2,050 units in 2022. Required: a. Calculate depreciation expense for 2021 and 2022 using the straight-line method. b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method. c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers to nearest whole dollar.) Depreciation Expense 2021 2022 < Required B 2023 2024 Required C > 2025
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual
value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company
produced 1,600 units in 2021 and 2,050 units in 2022.
Required:
a. Calculate depreciation expense for 2021 and 2022 using the straight-line method.
b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method.
c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers
to nearest whole dollar.)
Depreciation Expense
2021
2022
< Required B
2023
2024
Required C >
2025](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F850dedb7-06f1-4b41-a40f-d9fa61ab921c%2Fc4633ec2-2cce-44f7-9d4f-9a56796a886b%2Fz8jd9c_processed.png&w=3840&q=75)
Transcribed Image Text:Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was $44,000. Its estimated residual
value was $14,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company
produced 1,600 units in 2021 and 2,050 units in 2022.
Required:
a. Calculate depreciation expense for 2021 and 2022 using the straight-line method.
b. Calculate the depreciation expense for 2021 and 2022 using the units-of-production method.
c. Calculate depreciation expense for 2021 through 2025 using the double-declining balance method.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Calculate depreciation expense for 2021 through 2025 using the double-declining balance method. (Round your final answers
to nearest whole dollar.)
Depreciation Expense
2021
2022
< Required B
2023
2024
Required C >
2025
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Step 1: Define Depreciation
VIEWStep 2: a. Calculation of the depreciation expense using straight line method, as follows:
VIEWStep 3: b. Calculation of the depreciation expense using units of production method, as follows:
VIEWStep 4: c. Calculation of the depreciation expense using double declining method, as follows:
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