PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years,and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expected annualproduction was: year 1, 4,000 units; year 2, 4,000 units; year 3, 2,500 units; year 4, 1,300 units; and year 5, 1,200 units.Required:1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.)a. Straight-line.BookIncomeStatementBalance SheetDepreciationExpenseferencesYearAccumulatedCostBook ValueDepreciationAt acquisition1234b. Units-of-production.IncomeStatementBalance SheetDepreciationExpenseAccumulatedYearCostBook ValueDepreciationAt acquisition13.4c. Double-declining-balance.IncomeStatementBalance SheetAccumulatedBook ValueDepreciationExpenseCostYearDepreciationAt acquisition3.4< PrevMcGrawHillO Type here to search

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Description: PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years,and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expect

Depreciation is the allocation of cost of asset over the useful life of the asset. There are several…

Business

Accounting

PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expected annual production was: year 1, 4,000 units; year 2, 4,000 units; year 3, 2,500 units; year 4, 1,300 units; and year 5, 1,200 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) a. Straight-line. ok Income Statement Balance Sheet ences Depreciation Accumulated Depreciation Year Cost Book Value Expense At acquisition 2 3. 4 b. Units-of-production. Income Statement Depreciation Expense Balance Sheet Accumulated Year Cost Book Value Depreciation At acquisition 3. 4. c. Double-declining-balance. Income Statement Balance Sheet Accumulated Depreciation Expense Cost Book Value Year Depreciation At acquisition 2. 3.

PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expected annual production was: year 1, 4,000 units; year 2, 4,000 units; year 3, 2,500 units; year 4, 1,300 units; and year 5, 1,200 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) a. Straight-line. ok Income Statement Balance Sheet ences Depreciation Accumulated Depreciation Year Cost Book Value Expense At acquisition 2 3. 4 b. Units-of-production. Income Statement Depreciation Expense Balance Sheet Accumulated Year Cost Book Value Depreciation At acquisition 3. 4. c. Double-declining-balance. Income Statement Balance Sheet Accumulated Depreciation Expense Cost Book Value Year Depreciation At acquisition 2. 3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years,
and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expected annual
production was: year 1, 4,000 units; year 2, 4,000 units; year 3, 2,500 units; year 4, 1,300 units; and year 5, 1,200 units.
Required:
1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.)
a. Straight-line.
Book
Income
Statement
Balance Sheet
Depreciation
Expense
ferences
Year
Accumulated
Cost
Book Value
Depreciation
At acquisition
1
2
3
4
b. Units-of-production.
Income
Statement
Balance Sheet
Depreciation
Expense
Accumulated
Year
Cost
Book Value
Depreciation
At acquisition
1
3.
4
c. Double-declining-balance.
Income
Statement
Balance Sheet
Accumulated
Book Value
Depreciation
Expense
Cost
Year
Depreciation
At acquisition
3.
4
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