What is the book value at December 31? yearsCarlisle Manufacturing, which uses a calendar year,purchased a machine for $60,000 on January 5, 2015. Itestimates the machine will have a useful life of 10and a $6,000 residual value. The machine is expectedto produce 250,000 units during its useful life. Theactual number of units produced were 22,000 during2015, 31,000 during 2016, 24,000 during 2017, and30,000 during 2018.Using the straight-line method, what is the book valueat December 31, 2017?

Explanation of Straight-Line Depreciation Method:The Straight-Line Depreciation Method evenly…

Answered: years Carlisle Manufacturing, which…

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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A machine that produces cellphone components is purchased on January 1, 2024, for $163,000. It is expected to have a useful life of four years and a residual value of $11,000. The machine is expected to produce a total of 200,000 components during its life, distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year end. (a) Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation $ I per year ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to O decimal places, e.g. 125.)
A machine that produces cellphone components is purchased on January 1, 2024, for $171,000. It is expected to have a useful life of four years and a residual value of $12,000. The machine is expected to produce a total of 200,000 components during its life, distributed as follows: 40,000 in 2024, 50,000 in 2025, 60,000 in 2026, and 50,000 in 2027. The company has a December 31 year end. (a) Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation Senter a dollar amount per year per year ii. Units-of-production method (Round depreciation per unit to 3 decimal places, e.g. 15.257 and depreciation expense to 0 decimal places, e.g. 125.) Units-of-production method depreciation Senter a dollar amount per unit rounded to 3 decimal places per unit Year Depreciation Expense 2024 Senter a dollar amount 2025 Senter a dollar amount 2026 Senter a dollar amount 2027 Senter a dollar amount iii.…
New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Show your work. Round per unit to the nearest cent. Assume that New Style Corporation uses the Units-of-Activity method of depreciation.
New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Round per unit to the nearest cent. Assume that New Style Corporation uses the Straight-Line method of depreciation. 2020 2021 2022 2023 2024 Depreciation Expense for the year Accumulated Depreciation at year-end PPE, Net on year-end Balance Sheet Assume that New Style Corporation uses the Units-of-Activity method of depreciation. 2020 2021 2022 2023 2024 Depreciation Expense for the year Accumulated Depreciation at year-end PPE, Net on year-end Balance Sheet Assume that New Style Corporation uses the Double-Declining-Balance method of depreciation. 2020 2021…
New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Show your work. Round per unit to the nearest cent. Assume that New Style Corporation uses the Double-Declining-Balance method of depreciation.
New Style Corporation is a company that manufactures and sells chairs. On 1/1/20, the company purchases a piece of manufacturing equipment for $3,100,000 cash. The expected residual value is $200,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2020; 1,400,000 chairs in 2021; 1,000,000 chairs in 2022; and 600,000 chairs 2023; and 800,000 chairs in 2024. Show your work. Round per unit to the nearest cent. Assume that New Style Corporation uses the Straight-Line method of depreciation.
A machine that cost $475,500, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of product during its life. It actually produced the following units: 2020, 21,000; 2021, 128,500; 2022, 125,000; 2023, 108,300; and 2024, 102,200. The company’s year-end is December 31.Required:Show the depreciation for each year and the total depreciation for the machine under each depreciation method calculated to the nearest whole month. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
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Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: 4.What is the book value of the equipment at the end of 2020 using straight-line depreciation? 5.What is depreciation expense for the equipment at the end of 2019 using double-declining balance depreciation? 6What journal entry is needed at the end of 2020 to record depreciation expense using double-declining balance depreciation?
Comfort Corporation is a company that manufactures and sells chairs. On 1/1/21, the company purchases a piece of manufacturing equipment for $6,200,000 cash. The expected residual value is $400,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2021; 1,400,000 chairs in 2022; 1,000,000 chairs in 2023; and 600,000 chairs 2024; and 800,000 chairs in 2025. Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries.
On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Quick spent $2,200 painting it, $1,500 replacing tires, and $10,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 26,000 miles in each of the first four years and 19,750 miles in the fifth year-123,750 miles in total. In deciding which depreciation method to use, Carl Thomas, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule 1 Requirements - X Depreciation…
can you please help me answer this problem... Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: What is the depreciation expense per unit of production using the units-of-production depreciation? What is the total depreciation expense at December 31, 2019, using units-of-production depreciation? What journal entry is needed at the end of 2019 to record depreciation expense using straight-line depreciation? What is the book value of the equipment at the end of 2020 using straight-line depreciation? What is depreciation expense for the equipment…

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