Question

In: Accounting

A company bought a machine on January 1, 2017 for use in operations. The machine cost...

A company bought a machine on January 1, 2017 for use in operations. The machine cost $35,000 and the estimated residual value was $3,000. The machine has useful life of 3 years and produced 15,000 during 2017, 20,000 units during 2018 and 25,000 during 2019. Compute the depreciation expense under the straight line method for 2017, 2018 and 2019. Compute the depreciation under the units of production method for 2017, 2018 and 2019. Compute the depreciation under the double declining balance method for 2017, 2018 and 2019. Show the book value at the end of each year under the three methods. Show your work.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

On January 2, 2018, Athol Company bought a machine for use in operations. The machine has...
On January 2, 2018, Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $1,750. The company provided the following information: Invoice price of the machine, $73,000. Freight paid by the vendor per sales agreement, $870. Installation costs, $2,000 cash. Cost of cleaning up the supplies, boxes, and other garbage that remained after the installation of the machine, $125 cash. Payment of the machine's price...
Star Company purchases a factory machine at a cost of $18,000 on January 1, 2017. Star...
Star Company purchases a factory machine at a cost of $18,000 on January 1, 2017. Star expects its useful life of 4 years. Salvage value: 828 Double declining rate: 50% Instructions Prepare depreciation expense schedule by using declining-balance method.
On 1 January 2017, Peachy Ltd bought a machine for $142 000 cash. The useful life...
On 1 January 2017, Peachy Ltd bought a machine for $142 000 cash. The useful life of the machine was 10 years and the residual value was $17 000. The machine was to be depreciated using the straight line method. On 30 September 2019, the machine was traded in for a new model which cost $220 000. Peachy Ltd received a trade in allowance of $90 000 for the old machine. The new machine had a residual value of $25...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs for the year Variable overhead $ 2,100,000 Fixed overhead $ 8,400,000 Selling and administrative costs for the year Variable $ 800,000 Fixed $ 4,750,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit...
Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in...
Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed: 2017 2018 Final inventory: Average cost $ 150,000 $ 255,000 FIFO 160,000 270,000 Condensed income statements for Blago Wholesale appear below: 2017 2018 Sales $ 1,000,000 $ 1,200,000 Cost of...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 30 per unit Direct labor $ 50 per unit Overhead costs for the year Variable overhead $ 2,000,000 Fixed overhead $ 8,000,000 Selling and administrative costs for the year Variable $ 775,000 Fixed $ 4,250,000 Production and sales for the year Units produced 100,000 units Units sold 70,000 units Sales price per unit...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs for the year Variable overhead $ 4,400,000 Fixed overhead $ 6,600,000 Selling and administrative costs for the year Variable $ 750,000 Fixed $ 4,250,000 Production and sales for the year Units produced 110,000 units Units sold 80,000 units Sales price per unit...
Adelphi Company purchased a machine on January 1, 2017, for $90,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for $90,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000. Adelphi sold the machine on January 1, 2021 for $30,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number.
On January 1, 2017, Beard Company purchased a machine for $800,000. The machine is expected to...
On January 1, 2017, Beard Company purchased a machine for $800,000. The machine is expected to have a 10-year life and no residual value. On January 1, 2017, it leased the machine to Ajax Company for a three-year period at an annual rental of $200,000 to be paid at the end of each year. The lease has an implicit interest rate of 8%. Ajax has adopted early the provisions of ASC 842 on January 1, 2017. What's the initial value...
Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000. Adelphi sold the machine on January 1, 2021 for $24,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT