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The cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $201,140. It is...
The cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $201,140. It is estimated that the machine will have a $11,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 94,920, and its total production is estimated at 1,186,500 units. During 2014, the machine was operated 13,560 hours and produced 124,300 units. During 2015, the machine was operated 12,430 hours and produced 108,480 units. Compute depreciation expense on the machine for the year ending December 31, 2014, and the year ending December 31, 2015, using the following methods. (Round answers to 0 decimal places, e.g. 45,892.) 2014 2015 (a) Straight-line $ $ (b) Units-of-output $ $ (c) Working hours $ $ (d) Sum-of-the-years'-digits $ $ (e) Double-declining-balance (twice the straight-line rate) $
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The cost of equipment purchased by Waterway, Inc., on June 1, 2020, is $102,900. It is...
The cost of equipment purchased by Waterway, Inc., on June 1,
2020, is $102,900. It is estimated that the machine will have a
$10,500 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 46,200, and its total production is estimated at 616,000 units.
During 2020, the machine was operated 7,200 hours and produced
66,000 units. During 2021, the machine was operated 6,600 hours and
produced...
The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $92,400. It is...
The cost of equipment purchased by Bramble, Inc., on June 1,
2020, is $92,400. It is estimated that the machine will have a
$8,400 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 42,000, and its total production is estimated at 600,000 units.
During 2020, the machine was operated 6,900 hours and produced
63,200 units. During 2021, the machine was operated 6,320 hours and
produced...
The cost of equipment purchased by Sheffield, Inc., on June 1, 2020, is $100,800. It is...
The cost of equipment purchased by Sheffield, Inc., on June 1,
2020, is $100,800. It is estimated that the machine will have a
$8,400 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 46,200, and its total production is estimated at 660,000 units.
During 2020, the machine was operated 7,080 hours and produced
64,900 units. During 2021, the machine was operated 6,490 hours and
produced...
The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $92,400. It is...
The cost of equipment purchased by Bramble, Inc., on June 1,
2020, is $92,400. It is estimated that the machine will have a
$8,400 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 42,000, and its total production is estimated at 600,000 units.
During 2020, the machine was operated 6,900 hours and produced
63,200 units. During 2021, the machine was operated 6,320 hours and
produced...
The cost of equipment purchased by Blossom, Inc., on June 1, 2020, is $105,000. It is...
The cost of equipment purchased by Blossom, Inc., on June 1,
2020, is $105,000. It is estimated that the machine will have a
$4,200 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 50,400, and its total production is estimated at 504,000 units.
During 2020, the machine was operated 7,440 hours and produced
68,200 units. During 2021, the machine was operated 6,820 hours and
produced...
The Orange Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is...
The Orange Company purchased equipment on June 1, 2020. Assuming
the cost of the equipment is $70,000, the residual value is $6,000,
a useful life of 4 years and the use of the diminishing balance
method using 2 times the straight line rate. The company's year end
is December 31. Round all answers to the nearest dollar.
1) What is depreciation expense for the year ended December 31,
2020? $ Answer
2) What is the depreciation rate (%)? Answer %...
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping...
On January 1, 2014, Courier Inc. purchased new equipment that
had a total cost (including shipping and installation) of $82,000.
The equipment is expected to have a useful life of four years or
produce a total of 122,000 units. At the end of its life, the
equipment is expected to have a residual value of $4,900. The
equipment is expected to produce 25,620 units in 2014; 32,940 units
in 2015; 34,160 units in 2016; and 29,280 units in 2017. Courier...
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping...
On January 1, 2014, Courier Inc. purchased new equipment that
had a total cost (including shipping and installation) of $83,000.
The equipment is expected to have a useful life of four years or
produce a total of 123,000 units. At the end of its life, the
equipment is expected to have a residual value of $4,300. The
equipment is expected to produce 22,140 units in 2014; 31,980 units
in 2015; 31,980 units in 2016; and 36,900 units in 2017. Courier...
On January 1, 2014, Stark Company purchased equipment for a total cost of $155,000. The equipment...
On January 1, 2014, Stark Company purchased equipment for a
total cost of $155,000. The equipment had an estimated useful life
of 7 years and an estimated residual value of $43,000.
Straight-line depreciation was used. On September 1, 2020, Stark
Company disposes of the equipment. Required: Prepare the journal
entry to record the disposition on September 1, 2020 assuming the
equipment was sold for $39,000 cash. Prepare the journal entry to
record the disposition on September 1, 2020 assuming the...
On June 1, 2014, Montreal Corporation purchased a machine to process steel. The machine that cost...
On June 1, 2014, Montreal Corporation purchased a machine to
process steel. The machine that cost $3,000,000 was purchased from
Ontario Machine Inc. located in Toronto. Shipping amounted to
$200,000, annual insurance on the machine was $25,000 while the
installation cost was $85,000. Managers have estimated a 7
yearuseful life and a $200,000 salvage value (residual value).
MontrealCorporation’s year-end is December 31st.
Required:
(a) The president of Montreal Corporation wants you to calculate
amortization expense for the years ended December...
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