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)

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

ABC Co. purchased a machine on April 1, 2014 for $82,000 with an estimated useful life...

ABC Co. purchased a machine on April 1, 2014 for $82,000 with an estimated useful life of 6 years and salvage value of $4,000. They sold the machine on July 1, 2019, for $15,000. Assuming ABC Co. uses the straight line method of depreciating its assets, the journal entry to record the sale of the machine would include a: A. Debit to Loss for $1,250 B. Credit to Machine for $13,750 C. Credit to Gain for $1,250 D. Credit to Accumulated Depreciation...

BCK company purchased new equipment with an estimated useful life of four years. The cost of...

BCK company purchased new equipment with an estimated useful life of four years. The cost of the equipment was $50,000, and the salvage value was estimated to be $5,000 at the end of four years. The company uses the double-declining-balance method for book depreciation. (i) What is the amount of depreciation for the fourth year of use? (ii) What is the book value of the asset at the end of the third year?

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...

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...

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...

On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was...

On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do...

Subjects