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In: Accounting
Depreciation Methods Winsey Company purchased equipment on January 2, 2016, for $700,000. The equipment has the...
Depreciation Methods
Winsey Company purchased equipment on January 2, 2016, for $700,000. The equipment has the following characteristics:
| Estimated service life | 16 years, 80,000 hours, or 750,000 units of output |
| Estimated residual value | $50,000 |
During 2016 and 2017, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.
| 2016 | 2017 | |
| Straight-line method | $ | $ |
| Activity method (hours worked) | $ | $ |
| Activity method (units of output) | $ | $ |
| Sum-of-the-years'-digits method | $ | $ |
| Double-declining-balance method | $ | $ |
| 150%-declining-balance method | $ | $ |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Depreciation Methods Winsey Company purchased equipment on January 2, 2016, for $700,000. The equipment has the...
Depreciation Methods
Winsey Company purchased equipment on January 2, 2016, for
$700,000. The equipment has the following characteristics:
Estimated service life
20 years, 100,000 hours, 950,000 units of output
Estimated residual value
$50,000
During 2016 and 2017, the company used the machine for 4,500 and
5,500 hours, respectively, and produced 40,000 and 60,000 units,
respectively.
Required:
Compute depreciation expense for 2016 under each of the
following methods:
Round the depreciation rate per hour to 3 decimal places and
depreciation rate...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods
Gruman Company purchased a machine for $198,000 on January 2,
2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
180,000 units
Residual value
$ 18,000
In 2016, Gruman uses the machine for 1,700 hours and produces
45,000 units. In 2017, Gruman uses the machine for 1,200 hours and
produces 32,000 units. If required, round your final answers to the
nearest dollar.
If Gruman used a service life of 8 years or 15,000 hours...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods Gruman Company purchased a machine for
$198,000 on January 2, 2016. It made the following estimates:
Service life 5 years or 10,000 hours Production 180,000 units
Residual value $ 18,000 In 2016, Gruman uses the machine for 2,000
hours and produces 40,000 units. In 2017, Gruman uses the machine
for 1,400 hours and produces 32,000 units. If required, round your
final answers to the nearest dollar.
Required: Compute the depreciation for 2016 and 2017 under each
of the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods
Gruman Company purchased a machine for $198,000 on January 2,
2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
180,000 units
Residual value
$ 18,000
In 2016, Gruman uses the machine for 2,000 hours and produces
40,000 units. In 2017, Gruman uses the machine for 1,400 hours and
produces 32,000 units. If required, round your final answers to the
nearest dollar.
Required:
Compute the depreciation for 2016 and 2017 under each of the...
EXPLAIN STEP PLEASE Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2016....
EXPLAIN STEP PLEASE
Depreciation Methods
Gruman Company purchased a machine for $220,000 on January 2,
2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
200,000 units
Residual value
$20,000
In 2016, Gruman uses the machine for 1,800 hours and produces
44,000 units. In 2017, Gruman uses the machine for 1,500 hours and
produces 35,000 units. If required, round your final answers to the
nearest dollar.
Required:
Compute the depreciation for 2016 and 2017 under each...
Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $532,000....
Comparing Three Depreciation Methods Newbirth Coatings Company
purchased waterproofing equipment on January 2, 2013, for $532,000.
The equipment was expected to have a useful life of four years, or
8,000 operating hours, and a residual value of $44,000. The
equipment was used for 3,000 hours during 2013, 2,500 hours in
2014, 1,400 hours in 2015, and 1,100 hours in 2016. Required: 1.
Determine the amount of depreciation expense for the years ended
December 31, 2013, 2014, 2015, and 2016, by...
On January 2, 2016, the Hanover Company purchased some office equipment for $23,000. The equipment is...
On January 2, 2016, the Hanover Company purchased some office
equipment for $23,000. The equipment is expected to have a useful
life of five years and a salvage value of $5,000. Prepare a
schedule showing the annual depreciation for each of the first
three years of the asset's life under the straight-line method, the
double-declining-balance method, and the sum-of-the-years'-digits
method
On January 2, 2016, the Unit Manufacturing Company purchased manufacturing equipment for $83,000. The equipment is...
On January 2, 2016, the Unit Manufacturing Company purchased
manufacturing equipment for $83,000. The equipment is expected to
have a useful life of six years and a salvage value of $2,000.
Prepare a schedule showing the annual depreciation for each of the
first three years of the asset's life under the straight-line
method, the double-declining-balance method, and the
sum-of-the-years'-digits method.
Depreciation and Rate of Return Burrell Company purchased a machine for $51,000 on January 2, 2016....
Depreciation and Rate of Return
Burrell Company purchased a machine for $51,000 on January 2,
2016. The machine has an estimated service life of 5 years and a
zero estimated residual value. The asset earns income before
depreciation and income taxes of $25,500 each year. The tax rate is
25%.
Required:
Compute the rate of return earned (on the average net asset
value) by the company each year of the asset's life under the
straight-line and the double-declining-balance depreciation
methods....
Depreciation and Rate of Return Burrell Company purchased a machine for $19000 on January 2, 2016....
Depreciation and Rate of Return
Burrell Company purchased a machine for $19000 on January 2,
2016. The machine has an estimated service life of 5 years and a
zero estimated residual value. The asset earns income before
depreciation and income taxes of $9500 each year. The tax rate is
35%.
Required:
Compute the rate of return earned (on the average net asset
value) by the company each year of the asset's life under the
straight-line and the double-declining-balance depreciation
methods....
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