Question 1 of 2 View Policies Current Attempt in Progress Sandhill Limited purchased equipment on February 1, 2024, at a cost of $253, 220. As the CFO of the company, you are considering the merits of using the diminishing - balance or units-of-production method of depreciation instead of the straight-line method, which is currently being used for other equipment. The new equipment has an estimated residual value of $20,000 and an estimated useful life of either five years or 89,700 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following numbers of units each year: 14,000 units in 2024; 28,000 units in 2025; 20,000 units in 2026; 15,000 units in 2027; 12,000 units in 2028; and 700 units in 2029. Sandhill has a December 31 year end. (a) Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g . Do it with straight line double dimminishing and units of productionmethod. Do it with all three method There is no templete here
Question 1 of 2 View Policies Current Attempt in Progress Sandhill Limited purchased equipment on February 1, 2024, at a cost of $253, 220. As the CFO of the company, you are considering the merits of using the diminishing - balance or units-of-production method of depreciation instead of the straight-line method, which is currently being used for other equipment. The new equipment has an estimated residual value of $20,000 and an estimated useful life of either five years or 89,700 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following numbers of units each year: 14,000 units in 2024; 28,000 units in 2025; 20,000 units in 2026; 15,000 units in 2027; 12,000 units in 2028; and 700 units in 2029. Sandhill has a December 31 year end. (a) Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g . Do it with straight line double dimminishing and units of productionmethod. Do it with all three method There is no templete here
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 1 of 2 View Policies Current Attempt in Progress Sandhill Limited purchased equipment on February 1, 2024, at a cost of $253, 220. As the CFO of the company, you are considering the merits of
using the diminishing - balance or units-of-production method of depreciation instead of the straight-line method, which is currently being used for other equipment. The new equipment has an
estimated residual value of $20,000 and an estimated useful life of either five years or 89,700 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in
some years than in others. Assume the equipment produces the following numbers of units each year: 14,000 units in 2024; 28,000 units in 2025; 20,000 units in 2026; 15,000 units in 2027; 12,000 units
in 2028; and 700 units in 2029. Sandhill has a December 31 year end. (a) Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g
. Do it with straight line double dimminishing and units of productionmethod. Do it with all three method There is no templete here
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