Question
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Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used...
Depreciation Methods
On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 920,000 cuttings, after which it could be sold for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's
useful life under each of the following depreciation methods (round
all answers to the nearest dollar):
1. Straight-line.
2. Double-declining balance.
3. Units-of-production. (Assume annual production in cuttings of
200,000; 350,000; 260,000; and 110,000.)
1. Straight-Line
Year |
Depreciation Expense |
|---|---|
| 2018 | |
| 2019 | |
| 2020 | |
| 2021 |
2. Double-declining balance
Year |
Depreciation Expense |
|---|---|
| 2018 | |
| 2019 | |
| 2020 | |
| 2021 | |
| 2022 |
3. Units of Production
Year |
Depreciation Expense |
|---|---|
| 2018 | |
| 2019 | |
| 2020 | |
| 2021 |
b. Assume that the machine was purchased on July 1, 2018.
Calculate each year’s depreciation expense for the machine's useful
life under each of the following depreciation methods:
1. Straight-line.
2. Double-declining balance.
1. Straight-Line
Year |
Depreciation Expense |
|---|---|
| 2018 | |
| 2019 | |
| 2020 | |
| 2021 | |
| 2022 |
2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)
Year |
Depreciation Expense |
|---|---|
| 2018 | |
| 2019 | |
| 2020 | |
| 2021 | |
| 2022 |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
P9-3A. Depreciation Methods On January 2, 2018, Skyler, Inc. Purchased a laser cutting machine to be...
P9-3A. Depreciation Methods On January 2, 2018,
Skyler, Inc. Purchased a laser cutting machine to be used in the
fabrication of a part of its key products. The machine cost
$12,000, and its estimated useful life was four years or 920,000
cuttings, after which it could be sold for $5,000.
Required
a. Calculate each year's depreciation expense for the period
2018-2021 under each of the following depreciation methods:
1. Straight line.
2. Double-declining balance.
3. Units-of-production. Assume annual production in...
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On January 2, 2015, Roth, Inc. purchased a laser cutting machine
to be used in the fabrication of a part for one of its key
products. The machine cost $80,000, and its estimated useful life
was four years or 1,000,000 cuttings, after which it could be sold
for $5,000.
Calculate the depreciation expense for each year of the
machine's useful life under each of the following methods:
a. Straight-line
b. Double-Declining balance
c. Units of Production. Assume annual production in...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine
to be used in the fabrication of a part for one of its key
products. The machine cost $120,000, and its estimated useful life
was four years or 1,150,000 cuttings, after which it could be sold
for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's
useful life under each of the following depreciation methods (round
all answers to the nearest dollar):
1. Straight-line.
2. Double-declining balance....
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On January 2, Haskins Company purchases a laser cutting machine
for use in fabrication of a part for one of its key products. The
machine cost $120,000, and its estimated useful life is five years,
after which the expected salvage value is $7,500. Compute
depreciation expense for each year of the machine's useful life
under each of the following depreciation methods: Round answers to
the nearest whole number, when applicable.
a. Straight-line
Year 1 $Answer...
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Computing Straight-Line and Double-Declining-Balance
Depreciation
On January 2, Haskins Company purchases a laser cutting machine
for use in fabrication of a part for one of its key products. The
machine cost $112,000, and its estimated useful life is five years,
after which the expected salvage value is $7,000. Compute
depreciation expense for each year of the machine's useful life
under each of the following depreciation methods:
Note: Round answers to the nearest whole
number, when applicable.
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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...
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Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
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units in 2018 and 1,600 units in 2019.
Required:
a. Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
b. Calculate the depreciation expense for 2018 and 2019 using
the units-of-production method.
c....
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