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Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The company estimated the equipment...

Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $7,400. During 2015, the equipment produced 4,900 units. On November 30, 2016, the machine was sold for $19,000 and had produced 5,700 units that year.

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight-line, single-diminishing-balance, nnits-of-Production

Solutions

Expert Solution

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight line :

Date accounts & explanation debit credit
2015 Depreciation expense (69000-7400/3)*10/12 17111
Accumlated depreciation 17111
2016 Depreciation expense (69000-7400/3)*11/12 18822
  Accumlated depreciation 18822

Single diminishing balance

Date accounts & explanation debit credit
2015 Depreciation expense (69000*.33*10/12) 18975
Accumlated depreciation 18975
2016 Depreciation expense (69000*33%*2/12+69000*67%*33%*9/12) 15237
  Accumlated depreciation 15237

Unit of production

Date accounts & explanation debit credit
2015 Depreciation expense (69000-7400/12000)*4900 25153
Accumlated depreciation 25153
2016 Depreciation expense (69000-7400/12000)*5700 29260
  Accumlated depreciation 29260

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