Strong Metals Incorporated purchased a new stamping machine at the beginning of the year at a cost of $1,900,000. The estimatedresidual value was $100,000. Assume that the estimated useful life was five years and the estimated productive life of the machinewas 300,000 units. Actual annual production was as follows:Year Units1 70,000267,000350,000473,0005 40,000Required:1. Complete a separate depreciation schedule for each of the alternative methods.a. Straight-line.b. Units-of-production.c. Double-declining-balance.

Step 1:Units of production Depreciation per unit = (Cost value - salvage value) / Useful life in…

Answered: Strong Metals Incorporated purchased a…

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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Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage value of $10,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the accumulated depreciation charge on the second year?
Prepare a depreciation schedule for the following machine: the machine cost $43,000; it has an estimated residual value of $5,300 and expected life of 280,000 units. The units produced were: Year Units Depreciation Book value at the end of each year Year 1 95,000 units Year 2 80,000 units Year 3 50,000 units Year 4 35,500 units Year 5 30,000 units I need help working these problems out. Explain in detail please.
1. The initial cost of a paint sand mill, including its installation is P 700,000.00. The BIR approved life of this machine is 19 years for depreciation. The estimated salvage value of the mill is P8,000.00 and the cost of dismantling is estimated to be P 5,000.00. Using straight line depreciation, what is the book value of the machine at the end of six years? 2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap value after 20 years is P 60,000.00. How much is the depreciation for year 12? 3. Determine the rate of depreciation, the total depreciation up to the end of the 6th year and the book value at the end of 6 years for an asset that cost P 16,000.00 new and has an es mated scrap value of P 2,000.00 at the end of 10 years by the double declining balance method. 4. A firm bought an equipment for P 58,000.00. Other expenses inclu ding installation amounted to P 2,000.00. The equipment is expected to have a life of 8 years with a salvage of 10% of the…
Machinery was purchased for Php 5,000,000 with an estimated working hours or machine hours of about 25,000 hours. The expected scrap value is Php 200,000 and the estimated machine-hours for 10 years are as follow: Year Machine Hours per year 1 -3 4 - 6 3000 2600 7-10 800 You are required to calculate the annual depreciation under the machine-hours method.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,700. The machine's useful life is estimated at 10 years, or 397,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,700 units of product. Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: Choose Factor (%) = = = = Annual Depreciation Expense Depreciation expense
3) Manual bending machine for bending metal pipe was purchased for $50,000 and $5,000 more was spent on its installation. The estimated residual value after 10 years was $14,000. Using Straight-Line (SL) method:- i. Calculate the annual rate of depreciation. ii. Determine the amount of depreciation and Book Value (BV) at the end of six years after the purchased of the machine.
Isabel Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an estimated useful life of 6 years. After depreciating the asset for two years using straight-line method of depreciation, the company upgraded the machine parts and the cost of upgrading amounted to P120,000. Assuming the upgrading costs improved the quality of the asset's output, what is the revised depreciation expense for the 3rd year?
Red Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an estimated useful life of 6 years. After using and depreciating the asset for the past two years, the company upgraded the machine parts and the cost of upgrading amounted to P150,000. Assuming the upgrading costs improved the quality of the asset’s output, what is the revised depreciation expense for the 3rd year using the straight-line method?
Watkins Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of$64,000 and an expected life of 5 years. Calculate the depreciation expense, accumulated depreciation and book value for all 5 years ofthe machine's expected life using the straight-line method of depreciation
Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated expenditures were 5,600,000, actual interest was 562,000, and avoidable interest was 272,000. Salvage value is 1,150,000, and the useful life is 40 years. Calculate depreciation expense for the first full year using the slm method.
A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed by Lux Company on January 1. The factory estimates the machine will produce 1,050,000 units of product during its life. It actually produces the following units for the first 2 years: year 1, 260,000; year 2, 275,000. What is the depreciation amount for year 2 under the straight line method?
A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

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