Give true answer the general accounting The cost of equipment purchased by Sage, Inc., on June 1, 2017, is$99,680. It is estimated that the machine will have a $5,600 salvage valueat the end of its service life. Its service life is estimated at 7 years, its totalworking hours are estimated at 47,040, and its total production isestimated at 588,000 units. In 2017, the machine was operated for 6,720hours and produced 61,600 units. In 2018, the machine was operated for6,160 hours and produced 53,760 units.Compute depreciation expense on the machine for the year endingDecember 31, 2017, and the year ending December 31, 2018, using thestraight-line method.

Step 1:- Introduction to the Straight-line Depreciation MethodThe straight-line depreciation method…

Answered: The cost of equipment purchased by…

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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The cost of equipment purchased by Charleston Inc. on June 1, 2017 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2017 the machine was operated 6,000 hours and produced 55,000 units. During 2018 the machine was operated 5,500 hours and produced 48,000 units. Instruction: Compute depreciation expense on the machine for the year ending December 31, 2017 and the year ending December 31, 2018 using the following methods 1. Straight Line Method 2. Units-of-output 3. Working Hours 4. Sum-of-the-years-digits 5. Declining Balance(twice the SL rate)
The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892) a. b. Straight-line Units-of-output C. Working hours d. Sum-of-the-years-digits $ $ to e. Double-declining-balance $ tA 2025 7000 9310 14520 21000 25826 $ $ $ GA $ 2026 12000 8120 13310 14850 18440
The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) a. Straight-line b. Units-of-output C. Working hours d. Sum-of-the-years'-digits $ $ $ $ e. Double-declining-balance $ 2025 $ $ $ $ +A $ 2026
The cost of equipment purchased by Charleston, Inc., on June 1, 2025, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 525,000 units. During 2025, the machine was operated 6,000 hours and produced 55,000 units. During 2026, the machine was operated 5,500 hours and produced 48,000 units. Instructions Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. a. Straight-line. b. Units-of-output. c. Working hours. d. Sum-of-the-years’-digits. e. Double-declining-balance
The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $92.400. It is estimated that the machine will have a$ 8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2020, the machine was operated 6,900 hours and produced 63,200 units. During 2021, the machine was operated 6,320 hours and produced 55,200 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, eg. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 (a) Straight-line (b) Units-of-output (c) Working hours (d) Sum-of-the-years-digits (e) Double-declining-balance (twice the straight-line rate) %24 %4 %24 %24 %24 %24 %24 %24 %24
The cost of the equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of it's service life. It's service life is estimated at 7 years, it's total working hours are estimated at 42,000, and it's total production is estimated at 525,000 units. During 2020, the machine was operated 5,500 hours and produced 48,000 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.) Sum of the years' digits for 2020 and 2021: Double-clicking balance(twice the straight-line rate) for 2020 and 2021:
On June 15, 2017, a second-hand machine was purchased for $187,000. Before being put into service, the equipment was overhauled at a cost of $9,800, and additional costs of $400 for direct material and $800 for direct labour were paid in fine-tuning the controls. The machine has an estimated residual value of $6,000 at the end of its five-year useful life. The machine is expected to operate for 100,000 hours before it will be replaced and is expected to produce 1.20 million units in this time. Operating data for the next six fiscal years are provided below. The company has an October 31 fiscal year end. Year 2017 2018 2019 2020 2021 2022 Hours of Operation 10,000 20,000 20,000 20,000 18,000 12,000 Units Produced 110,000 270,000 264,000 310,000 134,000 112,000 Calculate the depreciation charges for each fiscal year under each of the following depreciation methods. (Round unit-of-output per unit to 4 decimal places, e.g. 15.2345 and Round other answers to O decimal places, e.g. 5,275.)…
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
On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine was expected to produce a total of 60,000 units in during its life. The machine actually produced 16,000 units during 2015, 23,000 units during 2016, and 21,000 units during 2017. The machinery has a salvage value of $3,000. Using the units-of-production method, the amount of depreciation that should be recorded during 2015 is approximately Using the units-of-production method, the book value of the machinery at December 31, 2016 is approximately _
Wings Manufacturing Company purchased a new machine on July 1, 2016. It was expected to produce 200,000 units of product over its estimated useful life of eight years. Total cost of the machine was $600,000, and salvage value was estimated to be $60,000. Actual units produced by the machine in 2016 and 2017 are shown below: 2016 16,000 units 2017 30,000 units Wings reports on a calendar-year basis and uses the units-of-production method of depreciation. The amount of depreciation expense for this machine in 2017 would be a.$90,000. b.$74,520. c.$81,000. d.$124,200.
Green Co. constructed a machine at a total cost of $81.70 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $4.90 million. At the beginning of 2018, Green decided to change to the straight-line method. Required:1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years’-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?
On January 1, 2017, Bushong Company purchased equipment at a cost of $12,600. The equipment had an estimated useful life of 6 years or 30,000 hours. The equipment will have a $1,200 salvage value at the end of its life. The equipment was used 6,500 hours in 2017. The depreciation expense for the year ending December 31, 2017, using the units-of-production method would be a.$2,470. b.$2,730. c.$3,800. d.$6,500.

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