Coronado Company purchased equipment for $216,240 on October 1,
2017. It is estimated that the equipment will have a useful life of
8 years and a salvage value of $12,240. Estimated production is
40,000 units and estimated working hours are 20,300. During 2017,
Coronado uses the equipment for 530 hours and the equipment
produces 1,100 units.
Compute depreciation expense under the following methods. Coronado
is on a calendar-year basis ending December 31. (Round
rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and
final answers to 0 decimal places, e.g. 45,892.)
Straight-line method for 2017
Sum-of-the-years'-digits method for 2019
Double-declining-balance method for 2018
1) Straight line method for 2017 = (216240-12240/8)*3/12 = 6375
2) Sum of year digit :
Sum of year digit = 8+7+6+5+4+3+2+1 = 36
Depreciation expense for 2019 = (204000*7/36*9/12+204000*6/36*3/12) = 38250
3) Double decline balance
Depreciation expense for 2018 = (216240*25%*9/12+216240*75%*25%*3/12) = 50681
Coronado Company purchased equipment for $216,240 on October 1, 2017. It is estimated that the equipment...
11-6 Coronado Company purchased equipment for $248,240 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,920. Estimated production is 40,400 units and estimated working hours are 20,000. During 2017, Coronado uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Coronado is on a calendar-year basis ending December 31. (Round rate per hour and...
Monty Company purchased equipment for $237,300 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,560. Estimated production is 39,600 units and estimated working hours are 20,300. During 2017, Monty uses the equipment for 530 hours and the equipment produces 1,000 units. Monty Company purchased equipment for $237,300 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years...
Sandhill Company purchased equipment for $236,430 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,320. Estimated production is 40,200 units and estimated working hours are 20,000. During 2017, Sandhill uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Sandhill is on a calendar-year basis ending December 31. (Round rate per hour and rate...
Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31. (Round rate per hour and rate...
Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31. (Round rate per hour and rate...
Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31. (Round rate per hour and rate...
Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31. (Round rate per hour and rate...
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