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Torge Company bought a machine for $65,300 cash. The estimated useful life was five years, and the estimated residual value was $5,100. Assume that the estimated useful life in productive units is 150,500. Units actually produced were 40,100 in year 1 and 45,150 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 2 Year 1 + 2-a. Which method would result in the lowest net income for Year 1? O Units-of-production Double-declining-balance Straight-line O Straight-line Book Value at the End of Year 1 Year 2 2-b. Which method would result in the lowest net income for Year 2? Units-of-production O Double-declining-balance

Torge Company bought a machine for $65,300 cash. The estimated useful life was five years, and the estimated residual value was $5,100. Assume that the estimated useful life in productive units is 150,500. Units actually produced were 40,100 in year 1 and 45,150 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 2 Year 1 + 2-a. Which method would result in the lowest net income for Year 1? O Units-of-production Double-declining-balance Straight-line O Straight-line Book Value at the End of Year 1 Year 2 2-b. Which method would result in the lowest net income for Year 2? Units-of-production O Double-declining-balance

FINANCIAL ACCOUNTING
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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■ ■ ■ ■ ■ ■ Required: 1. Determine the appropriate amounts to complete the following schedule. A Torge Company bought a machine for $65,300 cash. The estimated useful life was five years, and the estimated residual value was $5,100. Assume that the estimated useful life in productive units is 150,500. Units actually produced were 40,100 in year 1 and 45,150 in year 2. mm KIEJMMT FANTAS Method of Depreciation BAFLEBES Straight-line Units-of-production Double-declining-balance ■ Home VIASA Depreciation Expense for Year 2 Year 1 + 2-a. Which method would result in the lowest net income for Year 1? O Units-of-production ALUMIN DUMA O Double-declining-balance Jum O Straight-line ■ O Straight-line O Units-of-production AUT O Double-declining-balance Book Value at the End of Year 2 ■ Year 1 2-b. Which method would result in the lowest net income for Year 2? 10 " ■ ■ ■ ■ ■ 11 I ■ ■ B I M ■ ■ ■ ■ ■ ■ 1 I I ■ ■ I · ■ ■ ■ - ■ ■ ■ ■ ■
Transcribed Image Text:■ ■ ■ ■ ■ ■ Required: 1. Determine the appropriate amounts to complete the following schedule. A Torge Company bought a machine for $65,300 cash. The estimated useful life was five years, and the estimated residual value was $5,100. Assume that the estimated useful life in productive units is 150,500. Units actually produced were 40,100 in year 1 and 45,150 in year 2. mm KIEJMMT FANTAS Method of Depreciation BAFLEBES Straight-line Units-of-production Double-declining-balance ■ Home VIASA Depreciation Expense for Year 2 Year 1 + 2-a. Which method would result in the lowest net income for Year 1? O Units-of-production ALUMIN DUMA O Double-declining-balance Jum O Straight-line ■ O Straight-line O Units-of-production AUT O Double-declining-balance Book Value at the End of Year 2 ■ Year 1 2-b. Which method would result in the lowest net income for Year 2? 10 " ■ ■ ■ ■ ■ 11 I ■ ■ B I M ■ ■ ■ ■ ■ ■ 1 I I ■ ■ I · ■ ■ ■ - ■ ■ ■ ■ ■
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