Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234

Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234

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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The answer is, $4,880, you forgot to add the mileage. Mileage is .16 X 500= $80 + $4,800= $4,880
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Please complete this practice problem by using the 2 images below. Please write cleary and everything in order. Thank you
Holly Farms is considering two environmental chambers to accomplish detailed laboratory confirmations of online bacteria tests in chicken meat for the presence of E. coli 0157:H7 and Listeria monocytogenes. There is some uncertainty about how long the D103 chamber will be useful. A realistic estimate is 3 years, but pessimistic and optimistic estimates of 2 years and 6 years, respectively, are also reasonable. The estimated salvage value will remain the same. Using an interest rate of 10% per year, determine if any of the D103 estimates would result in a lower cost than that of the 490G chamber for a 6-year planning period. Chamber D103 Chamber 490G Installed cost, P, $ –400,000 −230,000 AOC, $ per year −4,000 −3,000 Salvage value at10% of P, $ 40,000 23,000 Life, years 2, 3, or 6 2 The D103 estimates would result in a lower cost than that of the 490G chamber for a (Click to select) 3 6 2 -year planning period.