Question foe 40-42 is not given hence i cant find the answer for it.
Solutions
43) Answer - (c)
units of production method
Depreciation = (Total Cost - residual value)/Production hours
Depreciation = ($11500 + $500 + $1500 - $800)/20484
Depreciation = $12700/20484
Depreciation = $0.62 Per hour (rounded off)
44) Answer - (c)
Depreciation for the year = $0.62*2500 hours = $1550
45) Answer - (c)
Depreciation for 5th Year = $0.62*3000 hours = $1860
40. If the asset is depreciated under the sum-of the-years'-digits method, the denominator of the depreciation...
40. If the asset is depreciated under the sum-of-the-years-digits method, the denominator of the depreciation rate would be... a. 55 b. 20 c. 15 d. 5 41. If the asset is acquired on January 1, 2016, and is depreciated under the sum-of-the-years'-digits method, first-year depreciation (rounded) would be... a. $81,667 b. $60,000 c. $49.000 d. $20,417 42. Under any GAAP depreciation method, the maximum depreciation permitted over the asset's life is ... a. $255,000 b. $250,000 c. $245,000 d. $200,000...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used .. a. for the remaining months of the year of acquisition, then again in the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used... a. for the remaining months of the year of acquisition, then again in 0 the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
8) What SUP Partial Year Sum of the Year’s Digits Depreciation for Asset 1004 Create a new worksheet to calculate depreciation for a table purchased on August 1, 2017, for $95,000. It has an estimated salvage value of $2,000 and is to be depreciated over 10 years using the sum-of-the-year’s digits method. Follow the same process used in the chapter to calculate depreciation for partial periods.
When the sum of the years digits method is used to depreciate an asset with four year life the depreciation expense is computed by multiplying a fractional part of the assets cost less the salvage value. The denominator of the fraction each year is the number ?
Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. A machine costing $212,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 122,800 in Year 1, 122,900 in Year 2, 120,500 in Year 3, 132,800 in Year 4. The...
Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2016. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2016, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2017, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the...
During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $26,200 with an estimated residual value of $1,200 and an estimated useful life of 10 years, the depreciation under different...
During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $24,000 with an estimated residual value of $1,000 and an estimated useful life of 10 years, the depreciation under different...
5 Computing Partial Period Depreciation under Multiple Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following information is provided. Cost and residual value Estimated service life Acquisition cost $45,000 Years Residual value $1,800 Service hours 36,000 Productive output (units) 86,400 Required Compute the annual depreciation using each of the following methods assuming that the asset was purchased on August 1, 2020. a. Straight-line depreciation: Compute the annual depreciation rate and amount for...