Accumulated depreciation On March 1, 20X1, your company, which usesdepreciation,Units-of-Production(UOP)purchases a machine for $300,000. Youestimate the machine will have a useful life of3,000,000 units and a residual value of $15,000.In 20X1, the machine produces 110,000 units; in20X2, it produces 130,000 units.Whatis the balanceinDepreciation at the end of 20X2?Accumulated

Explanation of Depreciation:Depreciation is the process of allocating the cost of a long-term asset…

Answered: On March 1, 20X1, your company, which…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
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On March 1, 2024, Eastlake Corporation, which uses the straight-line method, purchases equipment for $95,000. The company expects the equipment to last for 10 years and expects the equipment to have a residual value of $15,000. What is the annual depreciation rate? a. 8.42% b. 8.95% c. 10.00% d. 12.67%
What is the annual depreciation rate of this financial accounting question?
ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. Two years after, the depreciated replacement cost has declined to 1,470,000. Round off percentage to whole number and gross-up value to the nearest peso if you are required to gross up. On December 31, 2024, the equipment’s carrying value is
Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 33.33% year 2: 44.45% year 3= 14.81% and year 4 = 7.41%. Southern has a tax date of 25%. If the asset is sold at the end of 2 years for 29,000 what is the cash flow disposal ? 17,404 11,129 13,923 21,755 27,194
KLM Company has the opportunity to purchase an asset that costs $50,000. The asset is expected to increase net income by $20,000 per year. The asset has a 5-year useful life. Depreciation expense used in computing net income amounted to $10,000 per year. Based on this information the payback period is?
On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life ofthe machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000units during its life.Required:Calculate depreciation for 2018 and 2019 using each of the following methods. Round all computations to thenearest dollar.1. Straight line2. Sum-of-the-years’-digits3. Double-declining balance4. One hundred fifty percent declining balance5. Units of production (units produced in 2018, 30,000; units produced in 2019, 25,000)
On January 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life.Required:Calculate depreciation for 2021 and 2022 using each of the following methods. Round all computations to the nearest dollar.1. Straight line2. Double-declining balance3. Units of production (units produced in 2021, 30,000; units produced in 2022, 25,000)
Hudson Co. can purchase a machine for $190,000 and use it for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $12,800 $31,800 $76,000 $47,900 $127,200 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow (190,000) $ (190,000) 1 12,800 31,800 76,000 4 47,900 127,200 Payback period = %24 %24 3,
On December 31, 2020, Coronado Inc. has a machine with a book value of $1,165,600. The original cost and related accumulated depreciation at this date are as follows. Machine $1,612,000 Less: Accumulated depreciation 446,400 Book value $1,165,600 Depreciation is computed at $74,400 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) A fire completely destroys the machine on August 31, 2021. An insurance settlement of $533,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Avalon Industries buys equipment for $90,000, expects to use it for six years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: Multiple Choice O $15,000. O O $14,000. $28,000. $31,750.

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