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 2018 (year ending Dec 31) for this machine using the following methods:
1. Straight line
2. Units-of-output
3. Working hours
4. Declining-balance (twice the straight-line rate)
Homework Answers
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On June 1, 2018, Macho Manufacturing Company purchased new
equipment for $89,000. The equipment is estimated...
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
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produced...
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is...
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Beta Company purchased machinery on June 1, 2018 for $89,000. It provided the following data: Estimated...
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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...
Beta Company purchased machinery on June 1, 2018 for $89,000. It provided the following data: Estimated...
Beta Company purchased machinery on June 1, 2018 for $89,000. It provided the following data: Estimated Residual Value - $5 000 Estimated Service Life – 8 years Estimated Total Work Hours – 42 000 hours Estimated Total Production – 525 000 units Machine Usage (2018) – 5 500 hrs (2019) – 6 000 hrs Machine Production (2018) – 48 000 units (2019) – 55 000 units Beta Company uses a fractional-year policy to the nearest full month and...
Beta Company purchased machinery on June 1, 2018 for $89,000. It provided the following data: Estimated...
Beta Company purchased machinery on June 1, 2018 for $89,000. It provided the following data: Estimated Residual Value - $5 000 Estimated Service Life – 8 years Estimated Total Work Hours – 42 000 hours Estimated Total Production – 525 000 units Machine Usage (2018) – 5 500 hrs (2019) – 6 000 hrs Machine Production (2018) – 48 000 units (2019) – 55 000 units Beta Company uses a fractional-year policy to the nearest full month and its financial...
he cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $194,020. It is...
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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...
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...
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