E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The compan estimated that the machine will have a salvage value of S12,000. The machine is expected to be used for 10,000 work during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2022. b. Units-of-activity for 2022, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2022 and 2023. a. Straight-line method Cost Less: Salvage value Depreciable cost Useful life (years) Annual depreciation 2022 Depreciation: Annual Depreciation Months machine in use 2022 partial year depreciation b. Units-of-activity method Cost Less: Salvage value Depreciable cost Useful life (hours) Depreciable cost/hour 2022 Depreciation: Depreciable cost/hour Hours machine used 2022 depreciation expense c. Declining-balance method: Straight-line rate Double the straight-line rate 2022 Depreciation: Cost Double the straight-line rate 2022 full year depreciation Number of months in use

E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The compan estimated that the machine will have a salvage value of S12,000. The machine is expected to be used for 10,000 work during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2022. b. Units-of-activity for 2022, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2022 and 2023. a. Straight-line method Cost Less: Salvage value Depreciable cost Useful life (years) Annual depreciation 2022 Depreciation: Annual Depreciation Months machine in use 2022 partial year depreciation b. Units-of-activity method Cost Less: Salvage value Depreciable cost Useful life (hours) Depreciable cost/hour 2022 Depreciation: Depreciable cost/hour Hours machine used 2022 depreciation expense c. Declining-balance method: Straight-line rate Double the straight-line rate 2022 Depreciation: Cost Double the straight-line rate 2022 full year depreciation Number of months in use

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2022, Brent Tours purchased a new yacht for $2,100,000. The new yacht has an estimated useful life of nine years, and the residual value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Brent’s statement of financial position at December 31, 2022, net of accumulated depreciation, for this yacht? $Answer
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Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $129,600. The company estimated that the machine would have a salvage value of $12,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2025 (b) (c) (d) Activity method for 2025, assuming that machine usage was 800 hours Sum-of-the-years'-digits for 2026 Double-declining-balance for 2026 $ $ LA $ 9,750 4,680 31,200 43,200
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Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. 2022 Depreciation expense 5000 eTextbook and Media Attempts: unlimited %24
Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Part 1 Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 $enter a dollar amount enter a Depreciation Rate in percentages % $enter a dollar amount $enter a dollar amount $enter a dollar amount 2023 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a…