The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation . Given: A machine was purchased for $90,000. The machine has salvage value of $6,000 and useful life of 5 years. The machine can operate for 100,000 hours. The machine as follows: 20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019. (a) To compute: The annual depreciation under each of the following depreciation methods. (1) Straight-line method. (2) Activity method. (3) Sum-of-the-years’-digits method. (4) Double-declining-balance method.

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Answer 1

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Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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On January 1, 20X2, Mace, which uses the straight-line method, purchases a machine for $72,000 that it expects to last for 8 years; Mace expects the machine to have a residual value of $10,000. What is the machine's book value at the end of 20X4? i. $48,750 ii. $42,010 iii. $35,550 iv. $50,400 Accurate answer

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Triton Manufacturing had a beginning finished goods inventory of $23,500 and an ending finished goods inventory of $21,000 during FY 2023. Beginning work-in-process was $19,500 and ending work-in-process was $18,000. Factory overhead was $28,600. The total manufacturing costs amounted to $298,000. Use this information to determine the FY 2023 Cost of Goods Sold. (Round enter as whole dollars only.)

Answer 2

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Answer 3

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 6

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 7

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 8

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 9

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1Q Ch. 11 - 2. Identify the factors that are relevant in...Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - 7. What basic questions must be answered before...Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - 10. What are the major factors considered in...

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Chapter 11 Solutions

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.) (1) Straight-line method. (2) Sum-of-the-years’-digits method. (3) Double-declining-balance method.

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Chapter 11 Solutions

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.