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.

Question

Want to see the full answer?

Answer 1

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

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

hi expert please help me

Parsons Company is planning to produce 2, 100 units of product in 2017. Each unit requires 2.20 pounds of materials at $6.20 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 40% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. (b) Compute the standard cost of one unit of product.

hello teacher plz ans

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

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...

Concept explainers

Videos

(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.

Want to see the full answer?

Chapter 11 Solutions

Concept explainers

Videos

(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.

Want to see the full answer?

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.