Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $ 87,800. The company estimated that the machine has a salvage value of $ 8,800. The machine is expected to be used for  64,200 working hours during its  8-year life.

Compute depreciation using the following methods in the year indicated.

Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to 0 decimal places, e.g. 125)

Calculate the depreciation cost per hour. (Round answer to 2 decimal places, e.g. $1.25)

Units-of-activity for 2017, assuming machine usage was  410 hours. (Round answer to 0 decimal places, e.g. 125)

On October 1, 2019, Sobriety Company purchased a building for $2,000,000 to open a bar there, expecting to use it for fifteen years. Sobriety uses straight-line method to depreciate the building and estimates its residual value at $650,000. On August 1, 2022, Sobriety sold the building for $1,800,000. What is the gain or loss from the disposal? Identify whether it is gain or loss, and the amount. For example, the answer is $100,000 gain, then write down "$100,000 gain."

On October 1, 2022, Pharoah Company places a new asset into service. The cost of the asset is $96500 with an estimated 5-year life and $21500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Pharoah Company uses the straight-line method of depreciation?

$4825.

$3750.

$19300.

$9650.

Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31.

On October 17, 2007, the classified ads on the web site of The Seattle Times listed the following 13 used Toyota Prius automobiles for sale; the data set below shows the year, color, mileage (in miles) and asking price (in U.S. dollars) for each car:

year     color      mileage     price
2006     green        17043     25995
2007     gray         12628     24980
2005     maroon       24039     24885
2005     silver       48226     23995
2006     black        10522     22995
2004     silver       66345     21995
2007     white         5611     21995
2005     gold         24479     21595
2004     white        14618     20995
2005     silver       53699     20980
2004     silver       47649     17995
2003     white        39600     17500
2005     black       103126     16995

1. compute the correlation between mileage and price:

On the morning of October 22, 2020, the Texas Department of Health (TDH) in Austin received a telephone call from a student at Texas Southern University. The student reported that he and his roommate, a fraternity brother, were suffering from nausea, vomiting, shortness of breath and diarrhea. Both had become ill during the night. The roommate had taken an over-the-counter medication with some relief of his symptoms. Neither the student nor his roommate had seen a physician or gone to the emergency room. The students believed their illness was due to going to a party at The Address. Both admitted they went to the venue without wearing a mask or practice social distancing. Neither student had medical insurance. After one collapsed, the ambulance was called to take both male students to the hospital in the Texas Medical Center.

Once there the students were stabilized. The director of the CO-VID 19 triage division (YOU) was asked to facilitate the delivery of care, but most importantly payment for the services. The hospital St Luke’s which accepted the two students also had opened a medical inpatient clinic to treat those affected by the pandemic.

Although the building is new; the department is still in need of equipment. Furthermore, the director is trying to work with the board of directors of the hospital to move forward on the most rational course of action considering the impact of the pandemic, the timeline and during of how long it may take to find a cure; the cost of care for each patient, etc.

The hospital fiscal year ended with residual earnings of $1.2 million dollars. Keeping in mind, this is a for-profit hospital and stockholders are concerned about the upcoming recession and loss of their investment. Currently, there are four options of treatment available, one requires an expensive, new, but not proven medical equipment to treat the patient’s respiratory system. More expert staff will be needed as well.

Dubious of the future, but as the healthcare administer and director of this new triage division, how would you approach the project, the debt, funding, capital requirements, and the use of the current new capital asset? How would you handle the debt and the value of this for-profit institution considering the risk and the pressure from stockholders?

Keep in mind to use not only planning (present & future) budgeting and funding from the text, but also risk, equity, return on investment, capital investment and decision information. Consider all chapters covered target population, direct and indirect cost, the difference between debt funding and equity funding. Consider when investing or funding the breakeven or payback. Think outside the box

Sandhill Company purchased equipment for $235,200 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,440. Estimated production is 39,600 units and estimated working hours are 20,000. During 2017, Sandhill uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Sandhill is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2017 $ (b) Activity method (units of output) for 2017 $ (c) Activity method (working hours) for 2017 $ (d) Sum-of-the-years'-digits method for 2019 $ (e) Double-declining-balance method for 2018 $

Pacific Ink had beginning work-in-process inventory of $1,069,960 on October 1. Of this amount, $459,200 was the cost of direct materials and $610,760 was the cost of conversion. The 63,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 132,000 units were transferred out and 45,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,578,400 for direct materials and $4,182,090 for conversion.

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.

Compute the equivalent units for the materials and conversion cost calculations.

On the morning of October 22, 2020, the Texas Department of Health (TDH) in Austin received a telephone call from a student at Texas Southern University. The student reported that he and his roommate, a fraternity brother, were suffering from nausea, vomiting, shortness of breath and diarrhea. Both had become ill during the night. The roommate had taken an over-the-counter medication with some relief of his symptoms. Neither the student nor his roommate had seen a physician or gone to the emergency room. The students believed their illness was due to going to a party at The Address. Both admitted they went to the venue without wearing a mask or practice social distancing. Neither student had medical insurance. After one collapsed, the ambulance was called to take both male students to the hospital in the Texas Medical Center.

Once there the students were stabilized. The director of the CO-VID 19 triage division (YOU) was asked to facilitate the delivery of care, but most importantly payment for the services. The hospital St Luke’s which accepted the two students also had opened a medical inpatient clinic to treat those affected by the pandemic.

Although the building is new; the department is still in need of equipment. Furthermore, the director is trying to work with the board of directors of the hospital to move forward on the most rational course of action considering the impact of the pandemic, the timeline and during of how long it may take to find a cure; the cost of care for each patient, etc.

The hospital fiscal year ended with residual earnings of $1.2 million dollars. Keeping in mind, this is a for-profit hospital and stockholders are concerned about the upcoming recession and loss of their investment. Currently, there are four options of treatment available, one requires an expensive, new, but not proven medical equipment to treat the patient’s respiratory system. More expert staff will be needed as well.

Dubious of the future, but as the healthcare administer and director of this new triage division, how would you approach the project, the debt, funding, capital requirements, and the use of the current new capital asset? How would you handle the debt and the value of this for-profit institution considering the risk and the pressure from stockholders?

Keep in mind to use not only planning (present & future) budgeting and funding from the text, but also risk, equity, return on investment, capital investment and decision information. Consider all chapters covered target population, direct and indirect cost, the difference between debt funding and equity funding. Consider when investing or funding the breakeven or payback. Think outside the box.

Oriole Company purchased equipment for $238,400 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Oriole uses the equipment for 500 hours and the equipment produces 1,100 units.

Compute depreciation expense under each of the following methods. Oriole is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)