E Homework:Part 1 of 5Hearty Fried Chicken bought equipment on January 2, 2024, for $39,000. The equipment was expected to remain in service for four years and to operate for 11,000 hoursAt the end of the equipment's useful life, Hearty estimates that its residual value will be $6,000. The equipment operated for 1,100 hours the first year, 3,300 hours thesecond year, 4,400 hours the third year, and 2.200 hours the fourth year.Read the requirements.Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciationmethods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.Begin by preparing a depreciation schedule using the straight-line method.Straight-Line Depreciation ScheduleDepreciation for the YearDepreciableUsefulDepreciation AccumulatedBookAssetDateCostLifeExpenseDepreciationValueCost1-2-202412-31-202412-31-202512-31-202612-31-2027

Depreciation can be defined as a decrease in the carrying value of asset due to its usage in the…

Answered: Hearty Fried Chicken bought equipment…

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, 2024, reliable delivery service purchased a truck at a cost of $65,000. Before placing the truck in service, reliable spent $2500 painting it $2500 replacing tires, and $9500 over hauling the engine the truck should remain in service for five years and have a residual value of $6000. the trucks annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year – 105,000 miles in total. And deciding which depreciation method to use Harold Parker, the general manager, requesting depreciation schedule for each of the depreciation methods.( straight line units of production and double declining balance.) prepare the schedules.
On January 1, 2022 Romano Company purchased a machine for $180,000. It is estimated that the machine will have a useful life of 4 years with a salvage value of $10,000 at the end of its useful life. It is also estimated that the machine will produce 125,000 units over its useful life. Actual usage was as follows: 2022, 45,000 units; 2023, 35,000 units; 2024, 25,000 units; and 2025, 20,000 units. Required: Calculate the annual depreciation expense under each of the following methods using an excel spreadsheet: Declining-Balance (Can you show me the formulas required and explain how to get the numbers. I really don’t get this)
Mobley purchased a used van for use in its business on January 1, 2020. It paid $18,000 for the van. Mobley expects the van to have a useful life of four years, with an estimated residual value of $1,500. Mobley expects to drive the van 21,000 miles during 2020, 22,000 miles during 2021, 25,000 miles in 2022, and 97,000 miles in 2023, for total expected miles of 165,000. Read the requirements (Complete all input fields. Enter a 0 for any zero values.) Year Start 2020 2021 2022 2023 Straight-line method Annual Depreciation Accumulated Expense Depreciation Book Value
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On January 3, 2020, Gagne Inc. paid $320,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $2,500, $6,400 sales tax, and $21,100 for special installation. Management estimates that the computer will remain in service for five years and have a residual value of $20,000. The computer will process 50,000 documents the first year, decreasing annually by 5,000 during each of the next four years (that is 45,000 documents in 2021, 40,000 documents is 2022, and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units-of-production, and double-diminishing-balance). Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. First, select the labels for the formula and then compute the rate. (Round the rate to two decimal places.) Date January 3, 2020 December 31, 2020 December…
If Lew's Steel Forms purchases $632,000 of new equipment, they can lower annual operating costs by $300,000. The equipment will be depreciated straight-line to a zero book value over its 3-year life. Ignore bonus depreciation. At the end of the three years, the equipment will be sold for an estimated $25,000. The equipment will require the company to hold an extra $65,000 of inventory over the 3-year period. What is the NPV if the discount rate is 13 percent and the tax rate is 21 percent? NPV = 36491.30 X Attempt # 1: 0/1 (Score: 0/1) Allowed attempts: 3 X Incorrect Check Answer
On January 1, 2022 Romano Company purchased a machine for $180,000. It is estimated that the machine will have a useful life of 4 years with a salvage value of $10,000 at the end of its useful life. It is also estimated that the machine will produce 125,000 units over its useful life. Actual usage was as follows: 2022, 45,000 units; 2023, 35,000 units; 2024, 25,000 units; and 2025, 20,000 units. Required: Calculate the annual depreciation expense under each of the following methods using an excel spread sheet: Declining-Balance
On January 1, 2022 Romano Company purchased a machine for $180,000. It is estimated that the machine will have a useful life of 4 years with a salvage value of $10,000 at the end of its useful life. It is also estimated that the machine will produce 125,000 units over its useful life. Actual usage was as follows: 2022, 45,000 units; 2023, 35,000 units; 2024, 25,000 units; and 2025, 20,000 units. Required: Calculate the annual depreciation expense under each of the following methods using an excel spread sheet: Sum of years, digits
Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In Year 1, Gruman uses the machine for 2,000 hours and produces 45,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-of-the-years'-digits, and double-declining-balance depreciation methods? Depreciation expense Straight-line method Year 1 $fill in the blank 21 Year 2 $fill in the blank 22 Sum-of-the-years'-digits method Year 1 $fill in the blank 23 Year 2 $fill in the blank 24 Double-declining-balance method Year 1 $fill in the blank 25 Year 2 $fill in the blank 26
Crane Company bought a machine on January 1, 2022. The machine cost $166000 and had an expected salvage value of $20000. The life of the machine was estimated to be 4 years. The book value of the machine at the beginning of the third year would be
On 01-01-15, G purchased a machine for $10,000,000. Installation costs incurred and paid for on 01-01-15 were $50,000. G started using the machine on 01-01-15. G estimates it will use the machine for 3 years. At the end of the 3rd year, G will have to dispose of the machine at an estimated cost of $435,000. Assume as of 01-01-15 the interest rate on US Treasury securities was 1.75% and G’s credit standing required a 2% risk premium. G uses a straight-line depreciation method and assumes no salvage value. What amount should G report on its balance sheet as a fixed asset (machine) as of 12-31-15? Prepare an excel spreadsheet that clearly identifies and clearly labels G’s ARO obligation balance as of 12-31 for every year from 2015 to 2017 AND G’s accretion expense for every year for 2015 to 2017. Prepare the entries G should make related to the equipment and its ARO for the year ended 12-31-16 AND 12-31-17? On 01-01-18, G paid a vendor $420,000 to dispose of the machine in accordance…
Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In Year 1, Gruman uses the machine for 2,000 hours and produces 45,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. For each method, what is the book value of the machine at the end of Year 1? At the end of Year 2? Straight-line method Year 1 Year 2 Sum-of-the-years'-digits method Year 1 Year 2 Double-declining-balance method Year 1 $fill in the blank 15 Year 2 $fill in the blank 16 Activity method based on hours worked Year 1 $fill in the blank 17 Year 2 $fill in the blank 18 Activity method based on units of output Year 1 $fill in the blank 19 Year 2 $fill in the blank 20

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