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.
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
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
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?
None
Torge Company bought a machine for $66,800 cash. The estimated useful life was five years, and the estimated residual value was $5,600. Assume that the estimated useful life in productive units is 153,000. Units actually produced were 40,600 in year 1 and 45,900 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 Book Value at the End of Year 11 Year 2
At the beginning of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine’s useful life to be five years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced. Show your work below and then record the entries in the journal Calculate the depreciation using the: Straight-line method of depreciation Units-of-production method of depreciation Prepare the necessary December 31 adjusting entry to record depletion for the current year using the general journal.
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Required: Complete a depreciation schedule for the straight-line method. Prepare the journal entry to record Year 2 depreciation.
ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. Determine the machine's second-year depreciation using the units-of-production method
build a modelA purchased machine cost $320,000, with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Its useful life is 10 years. a) Compute the SL depreciation schedule over its useful life. b) Compute the DDB depreciation schedule over its useful life. c) Compute the MACRS depreciation schedule. Its ADR life is 12 years. d) Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture on the sale. Use the MACRS schedule

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