New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases apiece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the usefullife is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020;1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024.Round per unit to the nearest cent.Assume that New Style Corporation uses the Straight-Line method of depreciation.20202021202220232024Depreciation Expensefor the yearAccumulatedDepreciation at year-endPPE, Net on year-endBalance SheetAssume that New Style Corporation uses the Units-of-Activity method of depreciation.20202021202220232024Depreciation Expensefor the yearAccumulatedDepreciation at year-endPPE, Net on year-endBalance SheetAssume that New Style Corporation uses the Double-Declining-Balance method of depreciation.20202021202220232024Depreciation Expensefor the yearAccumulatedDepreciation at year-endPPE, Net on year-endBalance Sheet

The formula for the above table: The formula for the above table:

New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Round per unit to the nearest cent.

New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Round per unit to the nearest cent.

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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