Volkswagen car sales hit record high sales of $6.27 million. If one of Volkswagen’s assembly lines purchased a new quality control computer verifying VIN numbers for $6,636 with a 4-year life and residual value of $1,120, what is the depreciation expense in year 2 for the QC computer? Use the straight-line method.
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Volkswagen car sales hit record high sales of $6.27 million. If one of Volkswagen’s assembly lines purchased a new quality control computer verifying VIN numbers for $6,636 with a 4-year life and residual value of $1,120, what is the
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- Required information. [The following information applies to the questions displayed below] University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 Hours Used 2,900 2 1,800 3 1,900 4 2,100 5 6 1,900 1,900 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Year Expense 1 2 3 4 5 Accumulated Depreciation Book ValueUltra-clean special handling devices used in the filling process for the manufacture of baby food are placed into use at a cost of $850,000. These devices are expected to be useful for 4 years with a negligible salvage value at that time. Compare MACRS to traditional depreciation methods by calculating yearly depreciation allowances, present worth of the depreciation allowances, and book value for each year using each of the following. MARR is 11%. a. MACRS-GDS as is proper over its property class depreciation life. b. DDB taking a full deduction in the first year, with the last deduction in year 3. c. DDB switching to straight-line, taking a full deduction in the 1st year, with the last deduction in year 3. d. SLN taking a full deduction in the 1st year, with the last deduction in year 3.Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,000. The printer is expected to have a four-year useful life and a $3,900 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 551,300 483,700 384,700 389,600 Year 2 Year 3 Year 4 Total 1,809,300 The printer was sold at the end of Year 4 for $4.300. Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $2,560. Assume that the estimated productive life of the machine was 10,600 hours. Actual annual usage was 4,240 hours in Year 1; 3,180 hours in Year 2; 2,120 hours in Year 3; and 1,060 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete a depreciation schedule using the straight-line method. Year Depreciation Expense At acquisition 1 2 3 Accumulated Depreciation Net Book ValueYour business buys a copy machine for $8,000 on January 1. You estimate that the copy machine will produce 350,000 copies during its useful life; its salvage value after producing the 350,000 copies is projected to be $1,000. The copy machine produced 75,200 copies in year 1 and 68,300 copies in year 2. Calculate depreciation for each of the first two years using the units-of-production method.Exact Photo Service purchased a new color printer at the beginning of Year 1 for $41,400. The printer is expected to have a four-year useful life and a $4,140 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 551,500 479,600 384, 200 386,800 1,802,100 The printer was sold at the end of Year 4 for $4,590. Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.Robinson Industries purchased a copier system with a cost of $57,000 and a salvage value estimated at $5,000. It was expected that the copier would last four years, over which time it would produce 6,500,000 copies. The copier actually produced 1,500,000 copies in year 1, 1,900,000 copies in year 2, 1,800,000 copies in Year 3, and 1,400,000 copies in Year 4. Calculate the depreciation expense, accumulated depreciation and carrying value of the asset at year-end for each of the four years using the following methods (a) straight-line method; (b) units-of-production method; (c) double-declining balance method. Straight-line Year 1 Year 2 Year 3 Year 4 Depreciation expense Accumulated Depreciation Carrying valueExact Photo Service purchased a new color printer at the beginning of Year 1 for $37,300. The printer is expected to have a four-year useful life and a $3,900 salvage value. The expected print production is estimated at $1,774,500 pages. Actual print production for the four years was as follows: Year 1 552,700 Year 2 482,600 Year 3 378,000 Year 4 386,200 Total 1,799,500 The printer was sold at the end of Year 4 for $4,150. Required: a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciationCari Heat (CH) Ltd. is currently faced with a critical decision regarding its production equipment. Cari Heat (CH) is evaluating two options for its production equipment: upgrading or replacing. The company manufactures and sells 7,500 heaters every year, each priced at $920. The current production equipment, which was acquired at a cost of $2,150,000, has been in use for just two years and is subject to straight-line depreciation over a five-year useful life. Furthermore, it possesses no terminal disposal value, but it can be currently sold for $650,000. The following table presents data for the two alternatives: ABC 1 Choice Upgrade Replace 2 One-time equipment costs $3,500,0003 Variable manufacturing cost per Heater $180 $90 4 Remaining useful life of equipment (years) 3 3 5 Terminal disposal value of equipment 0 0 Required 1. Prepare a schedule, for the remaining 3 years, reflecting whether CH should upgrade its production line or replace it?University Car Wash built a deluxe car wash across the street from campus. The new machines cost $264,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Hours Used 1 2,900 2 1,300 3 1,400 4 2,600 5 2,400 6 1,900 Required: 1. Prepare a depreciation schedule for six years using the straight-line methodAssume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $22,000. The estimated useful life was four years, and the residual value was $2,000. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 4,000 hours in Year 1; 3,000 hours in Year 2; 2,000 hours in Year 3; and 1,000 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Year At acquisition 1 2 3 4 Req 1C Complete a depreciation schedule using the straight-line method. Depreciation Accumulated Expense Net Depreciation Book Value[The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,800 2 2,000 3 2,000 4 3,200 Problem 7-5B (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.) > Answer is complete but not entirely correct. QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year 1 Book Value Expense Depreciation $ 27,825 $ 27,825 $ 78,175 2 19,876 47,700 58,325 X 3 19,876 67,575 38,450 x 4 31,800 x 99,375 5,125 x Total $ 99,377SEE MORE QUESTIONS
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