Question
In: Accounting
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $32,000. Its estimated residual value was
$10,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 1,200
units in 2018 and 1,650 units in 2019.
Required:
- Calculate depreciation expense for 2018 and 2019 using the straight-line method.
- Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.
- Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $30,500. Its estimated residual value was
$9,500 at the end of an estimated 5-year life. The company expects
to produce a total of 10,000 units. The company produced 1,150
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....
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $38,000. Its estimated residual value was
$12,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 1,400
units in 2018 and 1,850 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $36,500. Its estimated residual value was
$11,500 at the end of an estimated 5-year life. The company expects
to produce a total of 10,000 units. The company produced 1,350
units in 2018 and 1,800 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost
of the machine was $34,000. Its estimated residual value was
$10,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 2,500
units in 2018 and 3,200 units in 2019.
Required:
Part A - Calculate depreciation expense for 2018 and 2019 using
the straight-line method.
Part B - Calculate the depreciation expense for 2018 and 2019
using...
On January 1, 2018, A Co. purchased a machine at a cost of $84,000. The machine...
On January 1, 2018, A Co. purchased a machine at a cost of
$84,000. The machine is expected to last 5 years and has a residual
value of $14,000.
Required:
1. Compute depreciation for the five year periods ending
December 31 using the straight-line, sum-of-the-years digits and
DDB method.
2. The machine is sold on January 1,2020 for $40,000. Compute
the gain or loss for each method.
On January 1, 2018, A Co. purchased a machine at a cost of $84,000. The machine...
On January 1, 2018, A Co. purchased a machine at a cost of
$84,000. The machine is expected to last 5 years and has a residual
value of $14,000.
Required:
1. Compute depreciation for the five year periods ending
December 31 using the straight-line, sum-of-the-years digits and
DDB method.
straight-line:
sum-of-the-years digits:
DDB method:
2. The machine is sold on January 1,2020 for $40,000. Compute
the gain or loss for each method.
Stay at Home Inc. purchased a machine on January 1st, 2018 for $88,000. The machine has...
Stay at Home Inc. purchased a machine on January 1st, 2018
for $88,000. The machine has no residual value and a 12 year useful
life.
At the end
of the first year, using straight line depreciation, what would
depreciation expense be?
At the end
of the second year, what would depreciation expense be?
At
the start of the third year, the company revaluates its estimates
and realizes the machine should have a $1,000 residual value and
only has 8 years...
Stahn Inc., an oil production company, purchased a machine on January 1, 2018. The following information...
Stahn Inc., an oil production company, purchased a machine on
January 1, 2018. The following information applies:
Cost
Estimated useful life
Residual value
$40,000
3 years
$4,000
The year-end of the company is December 31.
Required:
1.
Calculate the depreciation expense and the carrying amount at
year-end for the three-year period using the straight-line and
double-declining balance methods.
2.
Assume depreciation has been recorded using the double-declining
balance method. The machine is obsolete at the end of two years and...
On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $117,500. The
machine has an estimated salvage value of $10,400 and an estimated
useful life of 5 years. The machine can operate for 119,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 23,800 hrs;
2019, 29,750 hrs; 2020, 17,850 hrs; 2021, 35,700 hrs; and 2022,
11,900 hrs.
(a)
Compute the annual depreciation charges over the machine’s life...
On January 1, 2018, a machine was purchased for $122,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $122,500. The
machine has an estimated salvage value of $7,300 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
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