Schrade Company bought a machine for $114,000 cash. The estimated useful life was four years and the estimated residual value was $7,760, Assume that the estimated useful life in productive units is 128,000. Units actually produced were 51,000 in Year 1 and 53,000 in Year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest Earnings per Share for Year 1? 2-b. Which method would result in the lowest Earnings per Share for Year 2? 3. Which method would result in the highest amount of cash outflows in Year 1? Required 1 Required 2a Required 2b Required 3 Determine the appropriate amounts to complete the following schedule. Note: Do not round your intermediate calculations. Method of Depreciation Straight line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 $ 26,560 $ $ 42,330 $ 57,000 $ Required 1 Net Book Value at the End of Year 1 Year 2 87,440 S 26,500 $ 28,500 $ 60,880 57,000 $ 28,500 Required 2a >

Schrade Company bought a machine for $114,000 cash. The estimated useful life was four years and the estimated residual value was $7,760, Assume that the estimated useful life in productive units is 128,000. Units actually produced were 51,000 in Year 1 and 53,000 in Year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest Earnings per Share for Year 1? 2-b. Which method would result in the lowest Earnings per Share for Year 2? 3. Which method would result in the highest amount of cash outflows in Year 1? Required 1 Required 2a Required 2b Required 3 Determine the appropriate amounts to complete the following schedule. Note: Do not round your intermediate calculations. Method of Depreciation Straight line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 $ 26,560 $ $ 42,330 $ 57,000 $ Required 1 Net Book Value at the End of Year 1 Year 2 87,440 S 26,500 $ 28,500 $ 60,880 57,000 $ 28,500 Required 2a >

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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