The cost of equipment purchased by Concord, Inc., on April 1, 2020, is $127,000. It is estimated that the machine will have a $7,000 salvage value at the end of its service life. Its service life is estimated at 6 years; its total working hours are estimated at 40,000; and its total production is estimated at 480,000 units. During 2020, the machine was operated 3,500 hours and produced 48,000 units. During 2021, the machine was operated 5,600 hours and produced 55,000 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.,

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The cost of equipment purchased by Concord, Inc., on April 1, 2020, is $127,00O. It is estimated that the machine will have a
$7,000 salvage value at the end of its service life. Its service life is estimated at 6 years; its total working hours are estimated
at 40,000; and its total production is estimated at 480,000 units. During 2020, the machine was operated 3,500 hours and
produced 48,000 units. During 2021, the machine was operated 5,600 hours and produced 55,000 units.
Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021,
using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.)
2020
2021
(a)
Straight-line
2$
24
(b)
Units-of-output
%24
24
(c)
Working hours
24
(d)
Sum-of-the-years'-digits
24
(e)
Double-declining-balance (twice the straight-line rate)
24
2$
%24
%24
Transcribed Image Text:The cost of equipment purchased by Concord, Inc., on April 1, 2020, is $127,00O. It is estimated that the machine will have a $7,000 salvage value at the end of its service life. Its service life is estimated at 6 years; its total working hours are estimated at 40,000; and its total production is estimated at 480,000 units. During 2020, the machine was operated 3,500 hours and produced 48,000 units. During 2021, the machine was operated 5,600 hours and produced 55,000 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 (a) Straight-line 2$ 24 (b) Units-of-output %24 24 (c) Working hours 24 (d) Sum-of-the-years'-digits 24 (e) Double-declining-balance (twice the straight-line rate) 24 2$ %24 %24
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