DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2010. DuPage expects the machine to have a salvage 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: 2010, 40,000; 2011, 60,000; 2012, 35,000; and 2013, 25,000. Instructions Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of-activity, and (c) declining-balance using double the straight-line rate.

DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2010. DuPage expects the machine to have a salvage 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: 2010, 40,000; 2011, 60,000; 2012, 35,000; and 2013, 25,000. Instructions Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of-activity, and (c) declining-balance using double the straight-line rate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Solve
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a costo 43, 500 . The machine's useful life is estimated at 10 years, or 385, 000 units of product, with a \$5,000 g/v salvage value During its second year, the machine produces 32,500 units of product bartleby
On June 30, 2016, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine is a specialized highspeed drill that will need to be replaced in four years. The $20,000 cost of the drill is included in the $120,000 cost of the machine. Rosetta uses the straight-line depreciation method for all machinery. Required: 1. Calculate depreciation for 2016 and 2017 applying the typical U.S. GAAP treatment. 2. Repeat requirement 1 applying IFRS.
Spears Corporation bought a machine on January 1, 2016. In purchasing the machine, the company paid $50,000 cash and signed an interest-bearing note for $100,000. The estimated useful life of the machine is 5 years, after which time the salvage value is expected to be $15,000. The machine is expected to produce 67,500 widgets during its useful life. Given this information, if 10,000 widgets are produced in 2017, how much depreciation should be recorded in 2017, assuming that Spears Corporation uses the units-of-production depreciation method? a.$20,000 b.$22,222 c.$40,000 d.$30,000
Sweet Manufacturing purchased a machine on August 1, 2023 for use in its factory. Sweet paid $549,600 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $48,000. During its life, the machine was expected to produce 264,000 units. During 2023, the machine produced 26,000 units, and produced 40,000 in 2024. The machine was subject to a 20% CCA rate, and Sweet's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive. Calculate the annual depreciation amount for 2023 and 2024 using the Capital Cost Allowance method. Please ensure that your answer is correct.
Make a partial depreciation schedule for the third year using the units-of-production depreciation for a laser engraver that costs $43,000 and has scrap value of $4,000. The engraver has an expected life of 200,000 hours and is expected to last 15 years. Year Hours Annual Accumulated used depreciation depreciation 1 24,499 2 20,056 3 22,444 Complete the table below. Round each answer to the nearest cent Accumulated depreciation $4,777 31 $8,688.23 Year Hours Annual used depreciation 24,499 $4.777.31 $3,910.92 End of year book value 1 2 20,056 322,444 End-of-year book value $38.222.69 $34,311.77 Ame
Thunderbird Manufacturing purchases a new stamping machine for $50,000. Its useful life is estimated to be 250,000 units with a salvage value of $5,000. Prepare a units-of-production (UOP) depreciation schedule based on the given annual usage (units produced) as shown below. Thunderbird ManufacturingUnits-of-Production Depreciation ScheduleStamping Machine End of Year Depreciation per Unit ($) Units Produced Annual Depreciation ($) Accumulated Depreciation ($) Book value ($) $50,000 (new) 1 $ 50,000 $ $ $ 2 $ 70,000 $ $ $ 3 $ 45,000 $ $ $ 4 $ 66,000 $ $ $ 5 $ 30,000 $ $ $
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $80,600. The machine's useful life is estimated at 10 years, or 388,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 32,800 units of product. Units-of-production Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense / = Depreciation expense per unit / = Year Annual Production (units) Depreciation Expense Year 2
On January 1, 2017, Alissa Company purchased a truck for $450,000, and planned to use the truck for 150,000 miles and then sell the truck for $90,000. The company drove the truck for 30,000 miles in 2017 and 40,000 miles in 2018. On January 1, 2019, the company did a major overhaul of the truck for $75,000 and revised the total useful life of the truck to be 250,000 miles and the salvage value to be $60,000. Assuming the company uses the units of output method and that it used the truck for 35,000 miles in 2019, determine the depreciation expense for the truck for 2019. A. $43,167 B. $47,250 C. $57,750 D. $40,250
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $79,000. The equipment is expected to have a useful life of four years or produce a total of 119,000 units. At the end of its life, the equipment is expected to have a residual value of $4,400. The equipment is expected to produce 28,560 units in 2014; 30,940 units in 2015; 33,320 units in 2016; and 26,180 units in 2017. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar. Cost$79,000 Depreciation Expense Accumulated Depreciation Year Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod…
In 1998, Metlock Company completed the construction of a building at a cost of $2,200,000 and first occupied it in January 1999. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time. Early in 2009, an addition to the building was constructed at a cost of $550,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $22,000. In 2027, it is determined that the probable life of the building and addition will extend to the end of 2058, or 20 years beyond the original estimate.
Prepare a depreciation schedule for the following machine: the machine cost $43,000; it has an estimated residual value of $5,300 and expected life of 280,000 units. The units produced were: Year Units Depreciation Book value at the end of each year Year 1 95,000 units Year 2 80,000 units Year 3 50,000 units Year 4 35,500 units Year 5 30,000 units I need help working these problems out. Explain in detail please.