Question
In: Finance
You are a financial analyst for Loch Motor Company and have been asked to determine the...
You are a financial analyst for Loch Motor Company and have been
asked to determine the impact of alternative depreciation methods.
For your analysis, you have been asked to compare methods based on
a machine that cost $206,000. The estimated useful life is 12
years, and the estimated residual value is $46,160. The machine has
an estimated useful life in productive output of 222,000 units.
Actual output was 31,000 in year 1 and 27,000 in year 2.
Required:
1. For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)
a. Straight-line method.
b. Units-of-production method.
c. Double-declining-balance method.
Solutions
jeff jeffy answered 4 weeks agoRelated Solutions
You are a financial analyst for Loch Motor Company and have been asked to determine the...
You are a financial analyst for Loch Motor Company and have been
asked to determine the impact of alternative depreciation methods.
For your analysis, you have been asked to compare methods based on
a machine that cost $206,000. The estimated useful life is 12
years, and the estimated residual value is $46,160. The machine has
an estimated useful life in productive output of 222,000 units.
Actual output was 31,000 in year 1 and 27,000 in year 2.
Required:
1. For...
You are a financial analyst for Loch Motor Company and have been asked to determine the...
You are a financial
analyst for Loch Motor Company and have been asked to determine the
impact of alternative depreciation methods. For your analysis, you
have been asked to compare methods based on a machine that cost
$206,000. The estimated useful life is 12 years, and the estimated
residual value is $46,160. The machine has an estimated useful life
in productive output of 222,000 units. Actual output was 31,000 in
year 1 and 27,000 in year 2.
Required:
1.
For...
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