E9-16 (Algo) Computing Depreciation and Book Value for Two Years Using Alternative Depreciation Methods and Interpreting the Impact on the Fixed Asset Turnover Ratio [LO 9-3, LO 9-7] Korin Industries bought a machine for $95,000 cash. The estimated useful life was five years and the estimated residual value was $5,000. Assume that the estimated useful life in productive units is 198,000. Units actually produced were 52,800 in year 1 and 59,400 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. Req 1 Req 2A Req 2B Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense Year 1 Year 2 Year 1 Book Value at the End of Year 2

E9-16 (Algo) Computing Depreciation and Book Value for Two Years Using Alternative Depreciation Methods and Interpreting the Impact on the Fixed Asset Turnover Ratio [LO 9-3, LO 9-7] Korin Industries bought a machine for $95,000 cash. The estimated useful life was five years and the estimated residual value was $5,000. Assume that the estimated useful life in productive units is 198,000. Units actually produced were 52,800 in year 1 and 59,400 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. Req 1 Req 2A Req 2B Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense Year 1 Year 2 Year 1 Book Value at the End of Year 2

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

E9-16 (Algo) Computing Depreciation and Book Value for Two Years Using Alternative Depreciation
Methods and Interpreting the Impact on the Fixed Asset Turnover Ratio [LO 9-3, LO 9-7]
Korin Industries bought a machine for $95,000 cash. The estimated useful life was five years and the estimated residual value was
$5,000. Assume that the estimated useful life in productive units is 198,000. Units actually produced were 52,800 in year 1 and 59,400
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.
Req 1
Req 2A
Req 2B
Req 3
Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final
answers to the nearest whole dollar.)
Method of Depreciation
Straight-line
Units-of-production
Double-declining-balance
Depreciation Expense
Book Value at the End of
Year 1
Year 2
Year 1
Year 2
< Reg 1
Rea 24
>

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