Question

Q2 /please Answer part (B (2) Double-diminishing-balance method ) I have all answers I need only part 2 for all years Pharoah Limited purchased a machine on account on April 2, 2018, at an invoice price of $356,620. On April 4, it paid $2,130 for delivery of the machine. A one-year, $3,970 insurance policy on the machine was purchased on April 5. On April 18, Pharoah paid $7,590 for installation and testing of the machine. The machine was ready for use on April 30.

Pharoah estimates the machine’s useful life will be five years or 6,212 units with a residual value of $73,690. Assume the machine produces the following numbers of units each year: 896 units in 2018; 1,400 units in 2019; 1,405 units in 2020; 1,396 units in 2021; and 1,115 units in 2022. Pharoah has a December 31 year end.

A/ Determine the cost of the machine.

Cost of the machine

$

B/

Calculate the annual depreciation and total depreciation over the asset’s life using: (Round the depreciation cost per unit to the nearest cent. Round answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line method

Year		Depreciable Cost		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2018		$		$		$		$
2019
2020
2021
2022
2023

(2) Double-diminishing-balance method

Year		Opening Carrying Amount		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2018		$		$		$		$
2019
2020
2021
2022
2023

(3) Units-of-production method

Year		Units-of-production		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2018				$		$		$
2019
2020
2021
2022

(4) Which method causes net income to be lower in the early years of the asset’s life?

Straight-Line MethodDouble-Diminishing-Balance MethodUnits-of-Production MethodStraight-Line MethodDouble-Diminishing-Balance MethodUnits-of-Production Method

Q3/ Please answer only Part E I have answers for all parts I need only answer for part E

On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?

Cash proceeds from sale

$

On January 1, 2016, Cullumber Corporation acquired equipment costing $77,440. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.

A/

Calculate the equipment’s accumulated depreciation and carrying amount at the beginning of 2018.

Equipment’s accumulated depreciation		$
Carrying amount		$

B/

What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2018, for cash proceeds of $18,540?

LossGainfrom sale of equipment

$

C/

What is the depreciation expense for January 1, 2018, to October 31, 2018?

Depreciation expense

$

D/

On November 1, 2018, the company purchased additional equipment for $10,320 that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2018?

Total depreciation for 2 months

$

E/

On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?

Cash proceeds from sale

$

Answer 1

Depreciation rate under Double Declining balance =(1 / 5 years)*2 =40%
Double Declining balance
Date	Cost of asset	Book Value	DDB Rate	Depreciation expenses	Accumulated Depreciation	Book value
2018-8 months	$3,68,180	$3,68,180	26.67%	$98,180	$98,180	$2,70,000
2019	$3,68,180	$2,70,000	40.00%	$1,08,000	$2,06,180	$1,62,000
2020	$3,68,180	$1,62,000	40.00%	$64,800	$2,70,980	$97,200
2021	$3,68,180	$97,200	40.00%	$23,510	$2,94,490	$73,690
2022	$3,68,180	$0	40.00%	$0	$2,94,490	$73,690
2023-4 months	$3,68,180	$0	13.33%	$0	$2,94,490	$73,690