he cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $194,020. It is...
he cost of equipment purchased by Charleston, Inc., on June 1,
2014, is $194,020. It is estimated that the machine will have a
$10,900 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 91,560, and its total production is estimated at 1,144,500
units. During 2014, the machine was operated 13,080 hours and
produced 119,900 units. During 2015, the machine was operated
11,990 hours and produced 104,640 units.
Compute depreciation expense on the machine for the year ending
December 31, 2014, and the year ending December 31, 2015, using the
following methods.
| (a) |
Straight-line for 2014 and 2015 |
||
| (b) | Units-of-output for 2014 and 2015 | ||
| (c) | Working hours for 2014 and 2015 | ||
| (d) |
Sum-of-the-years'-digits for 2014 and 2015 |
||
| (e) | Double-declining-balance (twice the straight-line rate) for 2014 and 2015 |
Homework Answers
a . Depriciation as per Straight line method = cost - salvage vaue / life
For 2014 = (194020-10900/7)x7/12 = $15260.
For 2015 = (194020-10900/7) = $26160.
b. Depriciation as per units of output method = (cost - salvage value) x actual production during the period / estimated production during life time
For 2014 = (194020-10900)x119900/1144500 = $19184.
For 2015 = (194020-10900)x104640/1144500 = $16742.4
c . Depriciation as per working hours method = (cost - salvage value )xactusl working hours for the period / total working hours during life time
For 2014 = (194020-10900)x13080/91560
= $26160.
For 2015 = (194020-10900)x11990/91560 = $23980.
d. Depriciation as per sum of digit method
In the given case sum of years = 1+2+3+4+5+6+7 = 28
Depriciation for 2014 = (194020-10900)x7/28x7/12 = $26705
Depriciation for 2015 = (194020-10900)x7/28x5/12+(194020-10900)x6/28x7/12 = $41965
e . Depriciation as per double declining method
Double declining depriciation rate = (1/7)x2 = 28.57%.
Depriciation for 2014 = 194020x28.57%x7/12 =$32335.
Depriciation for 2015 = (194020-32335) x28.57% = $46193.
Note :- in case of double declining balance method there is no need to reduce salvage value.
Add Answer to:
he cost of equipment purchased by Charleston, Inc., on June 1,
2014, is $194,020. It is...
1 The cost of equipment purchased by Charleston Inc. Oon June 1, 2017 is $89,000. It...
1 The cost of equipment purchased by Charleston Inc. Oon June 1, 2017 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2017 the machine was operated 6,000 hours and produced 55,000 units. Buring 2018 the machine was operated 5,500 hours and...
Please provide me all explaination in detail with formulas? The cost of equipment purchased by Charleston,...
Please provide me all explaination in
detail with formulas?
The cost of equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 525,000 units. During 2020, the machine was operated 6,000 hours and produced 55,000 units. During...
The cost of equipment purchased by Waterway, Inc., on June 1, 2017, is $95,230. It is...
The cost of equipment purchased by Waterway, Inc., on June 1,
2017, is $95,230. It is estimated that the machine will have a
$5,350 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 44,940, and its total production is estimated at 561,750 units.
During 2017, the machine was operated 6,420 hours and produced
58,850 units. During 2018, the machine was operated 5,885 hours and
produced...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 49,560, and its total production is estimated at 619,500 units. During 2017, the machine was operated 7,080 hours and produced 64,900 units. During 2018, the machine was operated 6,490 hours and produced...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 49,560, and its total production is estimated at 619,500 units. During 2017, the machine was operated 7,080 hours and produced 64,900 units. During 2018, the machine was operated 6,490 hours and produced...
Problem 11-2 The cost of equipment purchased by Pina, Inc., on June 1, 2017, is $95,230....
Problem 11-2 The cost of equipment purchased by Pina, Inc., on June 1, 2017, is $95,230. It is estimated that the machine will have a $5,350 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 44,940, and its total production is estimated at 561,750 units. During 2017, the machine was operated 6,420 hours and produced 58,850 units. During 2018, the machine was operated 5,885 hours...
Maserati Corporation purchased a new machine for its assembly process on August 1, 2014. The cost...
Maserati Corporation purchased a new machine for its assembly process on August 1, 2014. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions: Compute the depreciation expense under the following methods. (a) Straight-line depreciation. Sum-of-the-Years’-Digits Method Double-Declining Balance Method
On June 1, 2018, Macho Manufacturing Company purchased new equipment for $89,000. The equipment is estimated...
On June 1, 2018, Macho Manufacturing Company purchased new equipment for $89,000. The equipment is estimated to have a salvage value of $5,000 at the end of its estimated service life of 7 years. Additional estimates includes 42,000 total working hours and 525,000 total production units. During 2018, the actual results were: 6,000 hours of operation 55,000 units produced During 2019, the actual results were: 5,500 hours of operation 48,000 units produced Instructions Calculate the depreciation expense for 2017 and...
Sony Corp. purchased a new machine on Jan 1, 2014. The cost of this machine was...
Sony Corp. purchased a new machine on Jan 1, 2014. The cost of this machine was $500,000. The company estimated that the machine would have a salvage value of $20,000 at the end of its service life. The estimated service life is 4 years and its estimated total working hours are 25,000 hours. Year-end is December 31. 1. Assuming 5,000 hours used in 2014, compute the depreciation expense for the year of 2014 under Activity method. 2. Compute the depreciation...
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $180,000. The...
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost
of $180,000. The company estimated that the machine would have a
residual value of $18,000. The machine is expected to be used for
9,000 working hours during its four-year life. Actual machine usage
was 1,300 hours in 2014; 2,000 hours in 2015; 2,100 hours in 2016;
1,900 hours in 2017; and 1,700 hours in 2018. Oriole has a December
31 year end.
Calculate depreciation for the machine...
1 The cost of equipment purchased by Charleston Inc. Oon June 1, 2017 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2017 the machine was operated 6,000 hours and produced 55,000 units. Buring 2018 the machine was operated 5,500 hours and...
Please provide me all explaination in
detail with formulas?
The cost of equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 525,000 units. During 2020, the machine was operated 6,000 hours and produced 55,000 units. During...
The cost of equipment purchased by Waterway, Inc., on June 1,
2017, is $95,230. It is estimated that the machine will have a
$5,350 salvage value at the end of its service life. Its service
life is estimated at 7 years, its total working hours are estimated
at 44,940, and its total production is estimated at 561,750 units.
During 2017, the machine was operated 6,420 hours and produced
58,850 units. During 2018, the machine was operated 5,885 hours and
produced...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 49,560, and its total production is estimated at 619,500 units. During 2017, the machine was operated 7,080 hours and produced 64,900 units. During 2018, the machine was operated 6,490 hours and produced...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 49,560, and its total production is estimated at 619,500 units. During 2017, the machine was operated 7,080 hours and produced 64,900 units. During 2018, the machine was operated 6,490 hours and produced...
Problem 11-2 The cost of equipment purchased by Pina, Inc., on June 1, 2017, is $95,230. It is estimated that the machine will have a $5,350 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 44,940, and its total production is estimated at 561,750 units. During 2017, the machine was operated 6,420 hours and produced 58,850 units. During 2018, the machine was operated 5,885 hours...
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost
of $180,000. The company estimated that the machine would have a
residual value of $18,000. The machine is expected to be used for
9,000 working hours during its four-year life. Actual machine usage
was 1,300 hours in 2014; 2,000 hours in 2015; 2,100 hours in 2016;
1,900 hours in 2017; and 1,700 hours in 2018. Oriole has a December
31 year end.
Calculate depreciation for the machine...
Most questions answered within 3 hours.
-
The USPS sells money orders identified by an 11 –digit number
x1, x2, …, x11. The...
asked 25 seconds from now -
Provide an example of equilibrium in relation to
Newton’s First and Second Laws. Explain your answer....
asked 32 seconds ago -
You are __________ to commit a Type I error using the 0.05 level
of significance than...
asked 18 minutes ago -
1. the following results are obtained:
200
kiwi
575 wild-type
What can we conclude about the...
asked 23 minutes ago -
Explain how you might use E. coli bacteria to produce human
growth hormone using the following:...
asked 24 minutes ago -
WHAT IS THE EFFEKT OF ADD K2CO3 TO ( METHANOL OG WATER)?
asked 38 minutes ago -
Calculate the cell potential, the equilibrium constant, and the
free-energy change for: Ca(s)+Mn2+(aq)(1M)⇌Ca2+(aq)(1M)+Mn(s) given
the following...
asked 36 minutes ago -
Determine the pH at the equivalence (stoichiometric) point in
the titration of 48 mL of 0.28...
asked 36 minutes ago -
11. In CPM/PERT, an activity that is on the critical path
A. has equal values for...
asked 43 minutes ago -
Using C++ :
A Pascals triangle row is constructed by looking at the previous
row and...
asked 1 hour ago -
With what speed will the fastest photoelectrons be emitted from
a surface whose threshold wavelength is...
asked 59 minutes ago -
The following slope distances and differences in elevations
between the tape ends were recorded for a...
asked 1 hour ago