years Carlisle Manufacturing, which uses a calendar year, purchased a machine for $60,000 on January 5, 2015. It estimates the machine will have a useful life of 10 and a $6,000 residual value. The machine is expected to produce 250,000 units during its useful life. The actual number of units produced were 22,000 during 2015, 31,000 during 2016, 24,000 during 2017, and 30,000 during 2018. Using the straight-line method, what is the book value at December 31, 2017?
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What is the book value at December 31?
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- 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.On June 30, 2024, Prego Equipment purchased a precision laser - guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units - of - production method. During the six months of 2024, 24, 000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: 1)$21, 950 2) $18,000 3) $43, 900 4)$36,000
- 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…
- Sonic Company has the following research and development activities during 2017-2020:In 2017, Sonic spent $400,000 to develop a new production process. It has applied for a patent for the new process and believed that it will be successful. Economic viability has not been achieved at end of 2017.On 1 February 2018, patent applied in 2017 was granted. Legal costs involved were $200,000. Patent was granted for 20 years where the developed process will be useful for the next ten years' operation.In the beginning of January 2019, there was infringement of patent by a competitor. Sonic spent $100,000 in defending against the patent infringement successfully. Sonic decided the patent can be used till the end of 2029.On 31 December 2020, Sonic estimated that the process only has a value-in-use of $200,000.RequiredPrepare all the journal entries to record the transactions during 2017-2020, including any amortization involved. Financial year end of the Sonic Company is 31 December.On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling the engine. The truck should remain in service for five years and have a residual value of $12,000. The truck’s annual mileage is expeZcted to be 32,000 miles in each of the first four years and 8,000 miles in the fifth year—136,000 journal entry to miles in total. In deciding which depreciation method to use, Andy Sargeant, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Requirements Prepare a depreciation schedule for each depreciation method, showingdepreciation expense, accumulated depreciation, and asset book value. Rapid prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. Consider the first two…The company "Delicia S.A." is considering the possibility of acquiring a new chocolate processing machine. Machine G has an initial cost of $ 93,750, an estimated service period of 15 years, at the end of which it will have a residual value of 28.3% of its initial value. In the first year, the cost for maintenance is expected to be $ 7,500, but from the second year, the estimated expenses for repairs and maintenance will be $ 8,000 and so on. Another "C" machine has a starting cost of $ 75,650 and a residual value of 25% of your initial investment at the end of its 15 years of service. Estimated repair and maintenance expenses will be $ 9,500 the first year, $ 9,850 the second, and so on. The "G" machine will provide revenue of $ 1,850 annually. Machine "C" will provide income of $ 2,732 per year. Using an interest rate of 4%, compare these alternatives by present value doing an analysis for extra investment. Leave evidence of the process of the method.