9. On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $33,600. The drill press is expected to last 10 years and has a residual value of $6,400. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 27,000 and 88,000 units, respectively, were produced.
![Required information The following information applies to the questions displayed below.] On January 1, 2018, Hobart Mfg. Co.](http://img.homeworklib.com/questions/15781450-6cd3-11eb-ad21-cbb8fdf4f32c.png?x-oss-process=image/resize,w_560)
Homework Answers
Calculate depreciation expense assuming the straight line method :
Depreciation expense = (33600-6400/10) = 2720
| 2018 | 2019 | |
| Depreciation | 2720 | 2720 |
| Book value | 33600-2720 = 30880 | 30880-2720 = 28160 |
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9. On January 1, 2018, Hobart Mfg. Co. purchased a drill press
at a cost of...
[The following information applies to the questions displayed below. On January 1, 2018, Hobart Mfg. Co....
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[The following information applies to the questions displayed below. On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $33,800. The drill press Is expected to last 10 years and has a residual value of $5,800. During Its 10-year life, the equipment Is expected to produce 500,000 units of product. In 2018 and 2019, 24,000 and 82,000 unlts, respectively, were produced. Problem 11-140 Requlred: Compute depreclation for 2018 and 2019 and the book value of...
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