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At the beginning of 2017, your company buys a $30,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 41,000 units in 2017, 49,000 units in 2018, 45,000 units in 2019, and 65,000 units in 2020. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight line method...
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At the beginning of 2017, your company buys a $28,800 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 2,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47000 units in 2017, 51,000 units in 2018, 47,000 units in 2019, and 55,000 units in 2020. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c....
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At the beginning of 2017, your company buys a $34,400 plece of equipment that it expects to use for 4 years. The equlpment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 45,000 units in 2017, 52,000 units in 2018, 45,000 units in 2019, and 58,000 units in 2020. Required: a. Determine the depreciable cost b. Calculate the depreciation expense per year under the straight-line method. c....
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At the beginning of 2017, your company buys a $30,400 piece of
equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 4,000. The company expects to produce a
total of 200,000 units. Actual production is as follows: 50,000
units in 2017, 54,000 units in 2018, 47,000 units in 2019, and
49,000 units in 2020.
Required:
Determine the depreciable cost.
Calculate the depreciation expense per year under the
straight-line method.
Use the straight-line...
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At the beginning of 2017, your company buys a $29,600 piece of
equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 4,000. The company expects to produce a
total of 200,000 units. Actual production is as follows: 42,000
units in 2017, 50,000 units in 2018, 47,000 units in 2019, and
61,000 units in 2020.
Required:
1. Determine the depreciable cost.
2. Calculate the depreciation expense per year under the
straight-line method.
3....
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Problem 10-2A Depreciation methods LO P1 A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,800 in 1st year, 122,700 in 2nd year, 119,800 in 3rd year, 122,700 in 4th year. The total number of units produced by the end of year 4 exceeds the...
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Solar Innovations Corporation bought a machine at the beginning of the vear at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units: year 3, 2,000 units: year 4, 2,000 units; and year 5, 1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a....
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help I'm stuck!
Problem 10-2A Depreciation methods LO P1 A machine costing $208,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 122,400 in 1st year, 124,100 in 2nd year, 120,400 in 3rd year, 120,100 in 4th year. The total number of units produced by the end of year...
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A machine costing $213,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 488,000 units of product during its life. It actually produces the following units: 122,100 in 1st year, 122,800 in 2nd year, 120,200 in 3rd year, 132,900 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
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Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2017, at a total cash price of $850,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $462,950; land, $295,500; land improvements, $59,100; and four vehicles $167,450. The company's fiscal year ends on December 31 Required 1-a. Prepare a table to allocate the lump-sum purchase price...
At the beginning of 2017, your company buys a $30,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 41,000 units in 2017, 49,000 units in 2018, 45,000 units in 2019, and 65,000 units in 2020. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight line method...
At the beginning of 2017, your company buys a $28,800 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 2,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47000 units in 2017, 51,000 units in 2018, 47,000 units in 2019, and 55,000 units in 2020. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c....
At the beginning of 2017, your company buys a $34,400 plece of equipment that it expects to use for 4 years. The equlpment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 45,000 units in 2017, 52,000 units in 2018, 45,000 units in 2019, and 58,000 units in 2020. Required: a. Determine the depreciable cost b. Calculate the depreciation expense per year under the straight-line method. c....
Problem 10-2A Depreciation methods LO P1 A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,800 in 1st year, 122,700 in 2nd year, 119,800 in 3rd year, 122,700 in 4th year. The total number of units produced by the end of year 4 exceeds the...
Solar Innovations Corporation bought a machine at the beginning of the vear at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units: year 3, 2,000 units: year 4, 2,000 units; and year 5, 1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a....
help I'm stuck!
Problem 10-2A Depreciation methods LO P1 A machine costing $208,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 122,400 in 1st year, 124,100 in 2nd year, 120,400 in 3rd year, 120,100 in 4th year. The total number of units produced by the end of year...
A machine costing $213,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 488,000 units of product during its life. It actually produces the following units: 122,100 in 1st year, 122,800 in 2nd year, 120,200 in 3rd year, 132,900 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2017, at a total cash price of $850,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $462,950; land, $295,500; land improvements, $59,100; and four vehicles $167,450. The company's fiscal year ends on December 31 Required 1-a. Prepare a table to allocate the lump-sum purchase price...