Homework Answers
a) Depreciation expense
| 2019 | 2020 | |
| Straight line | (185000-3000/4) = 45500 | 45500 |
| Double diminishing balance | 185000*50% = 92500 | 92500*50% = 46250 |
| Units of production | (185000-3000/25000*3600) = 26208 | 32760 |
b) Carrying value = 185000-45500-45500 = 94000
c) Journal entry
| No | General Journal | Debit | Credit |
| Jan 4 | Machine | 185000 | |
| Cash | 185000 | ||
| Dec 31,2020 | Depreciation expense | 32760 | |
| Accumulated depreciation-Machine | 32760 | ||
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In recent years, Sandhill Corporation has purchased three machines.
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a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used.
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below.
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Acquired
Cost
Residual
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2018
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$12,600
5
Straight-line
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July 1, 2019
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5
Diminishing-balance
3
Nov. 1,...
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Information concerning the machines is summarized in the table
below.
Machine
Acquired
Cost
Residual
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2018
$104,000
$12,600
5
Straight-line
2
July 1, 2019
91,250
9,150
5
Diminishing-balance
3
Nov. 1,...
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In recent years, Sandhill Corporation has purchased three machines.
Because of frequent employee turnover in the accounting department,
a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used.
Information concerning the machines is summarized in the table
below.
Machine
Acquired
Cost
Residual
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2018
$104,000
$12,600
5
Straight-line
2
July 1, 2019
91,250
9,150
5
Diminishing-balance
3
Nov. 1,...
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In recent years, Sandhill Corporation has purchased three machines.
Because of frequent employee turnover in the accounting department,
a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used.
Information concerning the machines is summarized in the table
below.
Machine
Acquired
Cost
Residual
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2018
$104,000
$12,600
5
Straight-line
2
July 1, 2019
91,250
9,150
5
Diminishing-balance
3
Nov. 1,...
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