Question

Midterm F2019 X Q Final Exam Accounting 101 x Q Upgrade Your Account |Qualet x Which of the following would X + newconnect meducation.com/flow/cornect.html?returnUrl=https%3A%2F%2Fconnect.mheducation.com%2Fpaamweb.index.html523%2Fregistration Fignup... OF 6 C Midterm F2019 6 S Help Save & Exit Su 74 Plastic Works Corporation bought a machine at the beginning of the year at a cost of S22.150. The estimated useful life was five years, and the residual value was $3,450 Assume that the estimated productive life of the machine is 18,700 units. Expected annual production was year 1.5 900 units year 2,5.900 units: year 3,3,450 units: year 4.1870 units, and year 5, 1580 units. DOS Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values os positive amount.) 300 a. Straight-line Balance Statement Depreciation Expense Income Depreciation a lance She Accumulated Cost Depreciation AGA IN -1 O Type here to search acer Caos los Alt Car

Answer 1

rate positively ..

Ans a)	Straight line method
			Computation of depreciable value
			Total cost		22150
		Less	Salvage value		3450
			Depreciable value		18700
			usefull life =		5
			Annual depreciation =		3740
			Depreciation for the year
	Date	Depreciation exp	Cost	Accumulated depreciation	Book value
	At acquisition				22150
	1	3740	22150	3740	18410
	2	3740	22150	7480	14670
	3	3740	22150	11220	10930
	4	3740	22150	14960	7190
	5	3740	22150	18700	3450
	Unit of production method
	Computation of depreciation expenses per unit
	Depreciation per unit = (Total cost - salvage value) / total unit
	Total unit =				18700
	Total cost	Salvage value	Total unit		Depreciation unit
	22150	3450	18700		1.000
	Date	Depreciation exp	Cost	Accumulated depreciation	Book value
	At acquisition				22150
	1	5900	22150	5900	16250
	2	5900	22150	11800	10350
	3	3450	22150	15250	6900
	4	1870	22150	17120	5030
	5	1580	22150	18700	3450
Ans c)	Double declining method
	Depreciation rate = 2/5			40%
	Date	Depreciation exp	Cost	Accumulated depreciation	Book value
	At acquisition				22150
	1	8860	22150	8,860	13290
	2	5316	22150	14,176	7974
	3	3190	22150	17,366	4784
	4	1,334	22150	18,700	3450
Ans 2-a)	Correct answer is option : Straight line
Ans 2-b)	Correct answer is option : No