Savior Company purchased a machine at a cost of P635, 000 on January 1, 2018. It wasestimated that the machine would have a residual value of P35, 000. Statistics relating to themachine over its estimated useful life were: Estimated useful life: Years-5; Service hours-60,000; Production output -150, 000Actual operationsservice hours. unit produced2018.14000.340002019.13000.320002020.10000.250002021.11000.290002022.12000.30000Required: Compute the depreciation expense for the year 2021 following methods:a Straight lineb. Service hoursc. Production methodd. SYDe. DDB

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Answered: Savior Company purchased a machine at a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life, the depreciation expense under unit of activity method for 2020, assuming machine usage was 1700 hours O a. 20400$ O b. 17000S O c. 8500$ O d. 1530OS
Blossom Corp. purchased equipment for $150000 on January 1, 2023. It is estimated that it has a useful life of 10 years, a residual value of $15200, and total production of 211000 units. During 2023, this machinery produced 23400 units. The Corporation has a December 31 year end. Using the units of production depreciation method, the 2023 depreciation expense will be O $13480 O $14949 O $26960 O $28680
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48.000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-decline balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 Record depreciation expense for 2024,
Mercury Inc. purchased equipment in 2016 at a cost of $400,000. The equipment was expected to produce 700,000units over the next five years and have a residual value of $50,000. The equipment was sold for $210,000 part waythrough 2018. Actual production in each year was: 2016 = 100,000 units; 2017 = 160,000 units; 2018 = 80,000units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposaldate.Required:1. Prepare the journal entry to record the sale.2. Assuming that the equipment was sold for $245,000, prepare the journal entry to record the sale.
On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations. The equipment has an estimated useful life of ten years, and an estimated residual value of $34000 It was also estimated that the equipment would be used a total of 71000 hours over its useful life. The depreciation expense for this equipment was $159040 for calendar 2023, using the units of production method. The machine was used for 8000 hours in 2023. The acquisition cost of the equipment was O $1713230. $1648490. $1143730. O $1445480.
Vik
Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At thebeginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, what journalentry(s) should Irwin record relating to the machine for 2018?
Asset ImpairmentGreen Light Ltd (GLL) tested a machine for impairment on 31 December 2018. The machine was carried at depreciated historical cost, and its carrying amount was $150,000. It had an estimated remaining useful life of 10 years. GLL's accounting policy required all property, plant and equipment's recoverable amount was determined on the basis of value-in-use calculation, using a discount rate of 15%. The management of GLL estimated the future net cash flows of the machine using reasonable assumptions. The following information related to future net cash flows of the machine was available at the end of 2018. Year Future net cash flow ('000)2019 22,1652020 21,4502021 20,5502022 24,7252023 25,3252024 24,8252025 24,1232026 25,5332027 24,2342028 22,850 Suppose in the years 2019-2021, no event occurred that required the machine's recoverable amount to be re-estimated. On 31 December 2022, costs of $25,000 were incurred to enhance the machine's performance. Revised estimated…
Bramble Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price Credit terms Freight-in costs Preparation and installation costs Labour costs during regular production operations $72,000 2/10, n/30 $700 $3,200 $9,000 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Bramble intends to use the machine for only eight years and expects to then be able to sell it for $1,500. The invoice for Machine no. 201 was paid on May 5, 2020. Bramble has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Bramble follows IFRS for financial statement purposes. Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculations and round final answers to O decimal places, e.g. 5,275.) 1. Straight-line method for the fiscal years ended December 31, 2020 and…
i need the answer quickly
Computational. 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. A year after, the replacement cost has declined to 1,700,000. Round off percentage to whole number and to nearest peso if you are required to gross up. Determine the loss due to revaluation
On Jan. 1, 2020, Evan Co. acquired a unit of equipment for a total cost of P15,000,000. The entity estimates that during its 10-year useful life, the equipment will be able to produce 1,500,000 units of its product for 30,000 working hours, and will be sold for scrap. The usage of the equipment from 2020 to 2023 is as follows: Units Produced Hours Used 2020 60,000 2,400 2021 28,000 1,500 2022 40,000 2,700 2023 60,000 4,500 On Jan. 1, 2024, the equipment was sold for P12,000,000. How much is the gain on sale on Jan. 1, 2024 assuming that Evan opted to use the working hours depreciation method?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS