Question

Complete the required tasks utilizing excel and label everything. All work must be shown

On January 1, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $680,000. The drill press is expected to last 6 years and has a residual value of $80,000. During its 6-year life, the equipment is expected to produce 300,000 units of product. Units actually produced over the 6-year useful life is as follows:

                  2021                        65,000 units

                  2022                        60,000 units

                  2023                        52,000 units

                  2024                        47,000 units

                  2025                        40,000 units

                  2026                        38,000 units

Required:

Compute depreciation for 2021 - 2026 and complete a depreciation schedule using each of the following methods:

1) Straight Line

2) Sum of the years-digits

3) Double Declining Balance

4) Units of Production Use the depreciation schedule located on Canvas under Modules, Course Information Ch. 11. You must label all work and calculations to received full credit. 5) Assume Hobart used the Double Declining Balance method and sold the equipment on December 31, 2023, Year 3, for $250,000 cash. Compute the gain or loss on disposal and prepare the journal entry to record the sale.

*** Round double declining rate to 4 decimal points

*** Round all numbers in the deprecation schedules to the nearest whole dollar

Answer 1