Homework Answers
1.
- Depreciation under SLM => (Cost - salvage value)/life ie., (18,000-2,000)/4= $ 4,000 pa.
- Units of Production: Total annual hours/expected hours. Ie n/160,000
- Double declining method: 1/life*2 = 1/4*2 = 50%
| SLM | UNITS OF PRODUCTION | DDB | |
| YEAR 1 | 4,000 | 18,000*40,000/160,000 = 4,500 | 18,000*50% = 9,000 |
| YEAR 2 | 4,000 | 18,000*60,000/160,000 = 6,750 | (18000-9000)*50%= 4500 |
| YEAR 3 | 4,000 | 18,000*35,000/160,000 = 3937.50 | (9000-4500)*50% = 2,250 |
2.
| Year 3 | Depreciation Expense Dr | 3937.50 | |
| To Accumulated Depreciation (or Machinery a/c) | 3937.50 | ||
3.
| Machinery | 18,000 | |
| Less: Accumulated Depreciation (4,000*3) | (12,000) | 6,000 |
4.
| 30/10/18 | Cash Dr | 16,000 | |
| Accumulated Depreciation Dr | 9,000 | ||
| Depreciation Dr (9000*50%*303/365) | 3735.62 | ||
| To Gains on sale of Asset | 10,735.62 | ||
| To Machinery | 18,000 |
Add Answer to:
Du page Company purchases a factory machine at a cost of $18000 on Jan. 1st, 2017....
Du page Company purchases a factory machine at a cost of $18000 on Jan. 1st, 2017....
Du page Company purchases a factory machine at a cost of $18000 on Jan. 1st, 2017. Du page expects the machine to have a residual value of $ 2000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used 160000 hours. Actual annual hourly use was 2017, 40000; 2018, 60000; 2019, 35000 and 2020, 25000. Required: 1) Prepare depreciation schedules for the following methods for the first 3 years: a. Straight...
On January 1, 2017, Quick Travel Transportation Company purchased a used aircraft at a cost of...
On January 1, 2017, Quick Travel Transportation Company purchased a used aircraft at a cost of $63,200,000. Quick Travel expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,200,000. Quick Travel expects to fly the plane 850,000 miles the first year, 1,325,000 miles each year during the second, third, and fourth years, and 2,175,000 miles the last year. Read the requirements. 1. Compute Quick Travel's depreciation for the first two years...
On January 1, 2017, QuickAir Transportation Company purchased a used aircraft at a cost of $63,100,000....
On January 1, 2017, QuickAir Transportation Company purchased a used aircraft at a cost of $63,100,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,100,000. QuickAir expects to fly the plane 800,000 miles the first year, 1,350,000 miles each year during the second, third, and fourth years, and 2,150,000 miles the last year. Read the requirements a. Straight-line method for 2017 and $ Using the straight-line method, depreciation is...
On January 1, 2017, Best Shipping Transportation Company purchased a used aircraft at a cost of...
On January 1, 2017, Best Shipping Transportation Company purchased a used aircraft at a cost of $46,300,000. Best Shippin Best Shipping expects to fly the plane 835,000 miles the first year, 1,225,000 miles each year during the second, third, and fou Read the requirements. 1. Compute Best Shipping's depreciation for the first two years on the plane using the straight-line method, the units-of-produa a. Straight-line method Using the straight-line method, depreciation is $ for 2017 and $ for 2018 b....
On January 1, 2017, Timely Delivery Transportation Company purchased a used aircraft at a cost of...
On January 1, 2017, Timely Delivery Transportation Company purchased a used aircraft at a cost of $63,400,000. Timely Delivery expects the plane to remain useful for five years (6,800,000 miles) and to have a residual value of $5,400,000. Timely Delivery expects to fly the plane 700,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 2,200,000 miles the last year. Read the requirements. 1. Compute Timely Delivery's depreciation for the first two years...
Burrell Company purchased a machine for $25000 on January 2, 2016. The machine has an estimated...
Burrell Company purchased a machine for $25000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $12500 each year. The tax rate is 25%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is...
MatthewCompany purchased a new machine on October 1, 2017, at a cost of $145,000. The company...
MatthewCompany purchased a new machine on October 1, 2017, at a cost of $145,000. The company estimated that the machine will have a salvage value of $25,000. The machine is expected to be used during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2017. (b) Declining-balance using double the straight-line rate for 2017 and 2018.
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $87,800. The...
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $87,800. The company estimated that the machine has a salvage value of $8,800. The machine is expected to be used for 64,200 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated. Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to o decimal places, e.g. 125) 2017 2018 Depreciation using the Declining-balance method Calculate the depreciation...
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used...
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $125,000, and its estimated useful life was four years or 1,200,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2....
On January 1, 2017, B Company purchased two machines for use in its production process. Machine...
On January 1, 2017, B Company purchased two machines for use in
its production process.
Machine B: The recorded cost of this machine
was $120,000. Dill estimates that the useful life of the
machine is 4 years with a $8,000 salvage value remaining at the end
of that time period.
(b) Calculate the amount of depreciation expense that should be recorded for Machine B each year of its useful life under the following assumption. (1) Company uses the straight-line method of...
Du page Company purchases a factory machine at a cost of $18000 on Jan. 1st, 2017. Du page expects the machine to have a residual value of $ 2000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used 160000 hours. Actual annual hourly use was 2017, 40000; 2018, 60000; 2019, 35000 and 2020, 25000. Required: 1) Prepare depreciation schedules for the following methods for the first 3 years: a. Straight...
On January 1, 2017, Quick Travel Transportation Company purchased a used aircraft at a cost of $63,200,000. Quick Travel expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,200,000. Quick Travel expects to fly the plane 850,000 miles the first year, 1,325,000 miles each year during the second, third, and fourth years, and 2,175,000 miles the last year. Read the requirements. 1. Compute Quick Travel's depreciation for the first two years...
On January 1, 2017, QuickAir Transportation Company purchased a used aircraft at a cost of $63,100,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $5,100,000. QuickAir expects to fly the plane 800,000 miles the first year, 1,350,000 miles each year during the second, third, and fourth years, and 2,150,000 miles the last year. Read the requirements a. Straight-line method for 2017 and $ Using the straight-line method, depreciation is...
On January 1, 2017, Best Shipping Transportation Company purchased a used aircraft at a cost of $46,300,000. Best Shippin Best Shipping expects to fly the plane 835,000 miles the first year, 1,225,000 miles each year during the second, third, and fou Read the requirements. 1. Compute Best Shipping's depreciation for the first two years on the plane using the straight-line method, the units-of-produa a. Straight-line method Using the straight-line method, depreciation is $ for 2017 and $ for 2018 b....
On January 1, 2017, Timely Delivery Transportation Company purchased a used aircraft at a cost of $63,400,000. Timely Delivery expects the plane to remain useful for five years (6,800,000 miles) and to have a residual value of $5,400,000. Timely Delivery expects to fly the plane 700,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 2,200,000 miles the last year. Read the requirements. 1. Compute Timely Delivery's depreciation for the first two years...
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $87,800. The company estimated that the machine has a salvage value of $8,800. The machine is expected to be used for 64,200 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated. Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to o decimal places, e.g. 125) 2017 2018 Depreciation using the Declining-balance method Calculate the depreciation...
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $125,000, and its estimated useful life was four years or 1,200,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2....
On January 1, 2017, B Company purchased two machines for use in
its production process.
Machine B: The recorded cost of this machine
was $120,000. Dill estimates that the useful life of the
machine is 4 years with a $8,000 salvage value remaining at the end
of that time period.
(b) Calculate the amount of depreciation expense that should be recorded for Machine B each year of its useful life under the following assumption. (1) Company uses the straight-line method of...
Most questions answered within 3 hours.
-
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 51 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 1 hour ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 hour ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 1 hour ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 2 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 3 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 3 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 3 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 3 hours ago -
Why are polymers not typically casted into products?
asked 3 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 3 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 3 hours ago