Provide calculation general accounting On January 1, 2018, McHenry Manufacturing Companypurchased a machine for $40,900,000. McHenry'smanagement expects to use the machine for 28,000 hours overthe next six years. The estimated residual value of the machineat the end of the sixth year is $44,000. The machine was usedfor 3,900 hours in 2018 and 5,900 hours in 2019. Calculate thebook value of the machine at the end of 2019 if the companyuses the units-of-production method of depreciation.A. $40,900,000B. $35,209,354C. $26,585,042D. $26,600,428

Step 1: Calculate the depreciable costDepreciable cost = Cost of the asset - Residual…

Answered: On January 1, 2018, McHenry…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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Bucker Company purchased a fabrication machine on January 1, 2020 for $55,000. The machine is expected to have an estimated useful of 5 years or 100,000 units produced. The machine is expected to have a residual value of $5,000 after the five years of use. a. Calculate the amount of depreciation each year using the straight-line method. b. Calculate the depreciation each year using the units-of-production method given the following usage: 2020: 22,000 units; 2021: 23,000 units; 2022: 21,000 units; 2023: 19,000 units; 2024: 15,000 units c. Calculate the depreciation each year using the double-declining balance method. d. Which of the three methods results in the lowest net income for 2021? e. Which of the three methods resuls in the lowest net income for 2024? ***Note: round all final…
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On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost of $64,400,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $6,400,000. QuickAir expects to fly the plane 925,000 miles the first year, 1,225,000 miles each year during the second, third, and fourth years, and 2,400,000 miles the last year. Read the requirements. 1. Compute QuickAir's depreciation for the first two years on the plane using the straight-line method, the units-of-production method, and the double-declining balance method. a. Straight-line method Using the straight-line method, depreciation is for 2020 and for 2021.
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