Sophia Company purchased equipment costing $100,000. The equipment has a residual value of $20,000 and an estimated useful life of 50,000 units. Using the units-of-activity method, calculate thedepreciation for year 1 and year 2, assuming that the company produced 10,000 units in year 1 and 23,000 units in year 2. Year 1: Year 2:
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Sophia Company purchased equipment costing $100,000. The equipment has a residual value of $20,000 and an estimated useful life of 50,000 units. Using the units-of-activity method, calculate thedepreciation for year 1 and year 2, assuming that the company produced 10,000 units in year 1 and 23,000 units in year 2.
Year 1:
Year 2:
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- Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $671,400. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $55,400. The equipment was used for 2,800 hours during Year 1, 1,680 hours in Year 2, 2,240 hours in Year 3, and 1,280 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Units-of-Activity Method Year Straight-Line Method Double-Declining- Balance Method Year 1 $ Year 2 $ $ $ Year 3 $ $ $ Year 4 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the…Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $1,350. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 12,285 V Year 2 Year 3 Year 4 b. Units-of-activity method Year Amount Year 1 9,100 Year 2 Year 3 $ Year 4 c. Double-declining-balance method Year AmountComparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $541,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $44,800. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ $ $ $ Units-of-Activity Method $ 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method 3. What method yields the most depreciation over the four-year life of…
- Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of 3 years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, do not round the multiplier. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Amount 87,000 X 87,000 87,000 87,000 X Year Year 1 Year 2 Year 3 Year 4 b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 Year 2 c. Double-declining-balance Method Year 3. Amount Year 4 108,750 79,750 58,000 14,500 Amount 180,000 X 60,000 XComparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $667,000. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $55,000. The equipment was used for 2,380 hours during Year 1, 1,428 hours in Year 2, 1,904 hours in Year 3, and 1,088 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in…Flexbottles enterprise had an machine which was purchased for P500,000. Residual value= P100,000 Life of the machine= 4,000 tonnes. During the period of April to June, the machine produced 100 tonnes of the product. Find the units of production depreciation for Flexbottles enterprises.
- Oliver Company purchased tool sharpening equipment on October 1 for $138,000. The equipment was expected to have a useful life of three years or 13,000 operating hours, and a residual value of $7,700. The equipment was used for 1,650 hours during Year 1, 4,700 hours in Year 2, 3,850 hours in Year 3, and 2,800 hours in Year 4. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by the straight-line method the units-of-activity method the double-declining-balance method.Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $416,000. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $34,400. The equipment was used for 2,520 hours during Year 1, 1,512 hours in Year 2, 2,016 hours in Year 3, and 1,152 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Units-of-Activity Method $ $ 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method 3. What method yields the most depreciation over the four-year life of the…Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $282,600. The equipment was expected to have a useful life of four years, or 4,800 operating hours, and a residual value of $23,400. The equipment was used for 1,680 hours during Year 1, 1,008 hours in Year 2, 1,344 hours in Year 3, and 768 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the…
- Required information [The following information applies to the questions displayed below] On January 1, Year 1, a company purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $16,000. The equipment is expected to produce 400.000 units during its life. Required: Calculate depreciation for Year 1 and Year 2 using each of the following methods. 3. Units of production (units produced in Year 1, 48,000; units produced in Year 2, 43,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculato Year 1 depreciation expense Depreciation per unit rate Units produced in Year 1 Depreciation in Year 1 Calculate Year 2 depreciation expense: Depreciation per unit rate. Units produced in Year 2 Depreciation in Year 2Dexter Industries purchased packaging equipment on January 8 for $314,600. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $26,000. The equipment was used for 3,120 hours during Year 1, 2,418 hours in Year 2, and 2,262 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Note: For all methods, round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the blank 7…Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $479,600. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $39,600. The equipment was used for 2,800 hours during Year 1, 1,680 hours in Year 2, 2,240 hours in Year 3, and 1,280 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of- activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method Units-of-Activity Method 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method Double-Declining- Balance Method 3. What method yields the most depreciation over…
