Question: A piece of machinery has a cost basis of $45,000. Its salvage value will be $5000 after10,000 hours of operation. With units-of-production depreciation, what is the allowabledepreciation rate per hour? What is the book value after 4,000 hours of operation?Suggestion: Use straight-line on an hourly basis for the rate. Use that rate to determine the BV @4,000 hours.

Depreciation Rate Per Hour This approach is used to compute the hourly rate of depreciation. The…

Its salvage val piece of machinery has a cost basis of s of operation. With units-of-production depreciation, what is rate per hour? What is the book value after 4,000 hours of o Use straight-line on an hourly basis for the rate. Use that rate

Its salvage val piece of machinery has a cost basis of s of operation. With units-of-production depreciation, what is rate per hour? What is the book value after 4,000 hours of o Use straight-line on an hourly basis for the rate. Use that rate

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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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
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Part I According to Chapter 10, what is the difference between an ordinary repair, an asset improvement, and an extraordinary repair? Please give an example of each and describe how each would be accounted for. Part II (1) Please explain the Units-of-Output depreciation method and give an example of when it might be used. (2) Suppose that a machine had a units-of-production depreciation rate of $2 per operating hour and that the machine was used 20,000 hours the first year. Please calculate the depreciation for the first year and show what the journal entry would be. (3) Can we assume that the first year's depreciation expense (calculated in question 2 above) will also be the depreciation expense for subsequent years? Why or why not?
Can you help me answer this question?
Improvement of the production line resulting in an increase in productivity, $32,100 would be an expense in the period occured or would be capitalized and depreciated over the useful life of the asset?
Two types of machine tools are available for performing a particular job in a certain manufacturing firm. The estimated costs and salvage values are sum marized in the following table. Machine A Machine B $30,000 $3,000 6 years $6,000 MACRS (GDS) (Straight-line method) 5 years $40,000 $2,500 8 years $4,000 MACRS (GDS) First cost O&M costs/year Service life Salvage value Depreciation method Recovery period 5 years The effective state and federal tax rate is 50%, and the capital-gains rate is 35%. Make your comparison after income taxes, using a MARR of 10% and in- dicate the study period.