Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 160,000....

Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 160,000. The company estimated that the machine would have a residual value of $ 14,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2014; 2,400 hours in 2015; 2,200 hours in 2016; 2,000 hours in 2017; and 1,800 hours in 2018. Blossom has a December 31 year end.

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line for 2014 through to 2018.
(2) Diminishing-balance using double the straight-line rate for 2014 through to 2018.

(3) Units-of-production for 2014 through to 2018.

Expert Solution

explanation

ekkarill92 answered 2 years ago

Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 197,600....

Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 197,600. The company estimated that the machine would have a residual value of $ 14,000. The machine is expected to be used for 10,200 working hours during its four-year life. Actual machine usage was 1,500 hours in 2014; 2,300 hours in 2015; 2,200 hours in 2016; 2,100 hours in 2017; and 2,100 hours in 2018. Blossom has a December 31 year end. Calculate depreciation for...

Sunland Ltd. purchased a new machine on April 4, 2014, at a cost of $187,360. The...

Sunland Ltd. purchased a new machine on April 4, 2014, at a cost of $187,360. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,200 working hours during its four-year life. Actual machine usage was 1,400 hours in 2014; 2,000 hours in 2015; 2,400 hours in 2016; 2,300 hours in 2017; and 2,100 hours in 2018. Sunland has a December 31 year end. Calculate depreciation for the machine...

Ivanhoe Ltd. purchased a new machine on April 4, 2014, at a cost of $188,000. The...

Ivanhoe Ltd. purchased a new machine on April 4, 2014, at a cost of $188,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,400 hours in 2014; 2,200 hours in 2015; 2,300 hours in 2016; 2,100 hours in 2017; and 2,000 hours in 2018. Ivanhoe has a December 31 year end. Calculate depreciation for the machine...

Cullumber Ltd. purchased a new machine on April 4, 2014, at a cost of $156,000. The...

Cullumber Ltd. purchased a new machine on April 4, 2014, at a cost of $156,000. The company estimated that the machine would have a residual value of $14,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2014; 2,400 hours in 2015; 2,000 hours in 2016; 2,200 hours in 2017; and 1,900 hours in 2018. Cullumber has a December 31 year end. Calculate depreciation for the machine...

Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $ 184,000....

Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $ 184,000. The company estimated that the machine would have a residual value of $ 16,000. The machine is expected to be used for 10,500 working hours during its four-year life. Actual machine usage was1,500 hours in 2014; 2,400 hours in 2015; 2,500 hours in 2016; 2,100 hours in 2017; and 2,000 hours in 2018. Oriole has a December 31 year end. Calculate depreciation for the...

Wildhorse Ltd. purchased a new machine on April 4, 2014, at a cost of $152,000. The...

Wildhorse Ltd. purchased a new machine on April 4, 2014, at a cost of $152,000. The company estimated that the machine would have a residual value of $14,000. The machine is expected to be used for 9,200working hours during its four-year life. Actual machine usage was 1,300 hours in 2014; 2,000 hours in 2015; 2,500 hours in 2016; 1,800 hours in 2017; and 1,600hours in 2018. Wildhorse has a December 31 year end. (a) Calculate depreciation for the machine under...

Carla Vista Ltd. purchased a new machine on April 4, 2014, at a cost of $162,400....

Carla Vista Ltd. purchased a new machine on April 4, 2014, at a cost of $162,400. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 9,500 working hours during its four-year life. Actual machine usage was 1,400 hours in 2014; 2,100 hours in 2015; 2,300 hours in 2016; 2,000 hours in 2017; and 1,700 hours in 2018. Carla Vista has a December 31 year end. Calculate depreciation for...

Wildhorse Ltd. purchased a new machine on April 4, 2017, at a cost of $180,000. The...

Wildhorse Ltd. purchased a new machine on April 4, 2017, at a cost of $180,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 12,960 working hours during its four-year life. Actual machine usage was 1,300 hours in 2017; 1,900 hours in 2018; 2,500 hours in 2019; 1,900 hours in 2020; and 2,100 hours in 2021. Wildhorse has a December 31 year end. (a) Calculate depreciation for the...

Sheridan Ltd. purchased a new machine on April 4, 2017, at a cost of $164,000. The...

Sheridan Ltd. purchased a new machine on April 4, 2017, at a cost of $164,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 14,800 working hours during its four-year life. Actual machine usage was 1,400 hours in 2017; 2,100 hours in 2018; 2,400 hours in 2019; 2,300 hours in 2020; and 2,000 hours in 2021. Sheridan has a December 31 year end. Calculate depreciation for the machine...

On April 1, 2014, Mattson purchased new equipment at cost of $325,000. Useful life of the...

On April 1, 2014, Mattson purchased new equipment at cost of $325,000. Useful life of the equipment was estimated at 5 years, with residual value of $25,000. Compute the annual depreciation expense for each year under each depreciation method listed below using half year convention method: i. Straight- line method ( Using half year convention ) ii. 150% declining-balance method (Using full year convention) iii. 200% declining balance method (Using half year convention method switching to straight line)

Question