Homework Answers
| Question 9 : | ||
| Total cost of machine = Cost of purchase + Cost of delivery and installation = 15000 + 2000 | 17000 | |
| Double declining depreciation rate = ( 100% / Estimated useful life ) * 2 = ( 100% / 4 ) * 2 | 50% | |
| First year's annual depreciation = Total cost of machine * Double declining depreciation rate = 17000 * 50% | 8500 | Option d |
| Question 10 : | ||
| Depreciation per unit = ( Cost of machine - Estimated residual value ) / Estimated total production of units = ( 190000 - 10000 ) / 750000 | 0.24 | per unit |
| Depreciation for second year = Units produced in second year * Depreciation per unit = 111000 * 0.24 | 26640 | Option d |
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Question 9 A machine costing $15,000 was purchased. Delivery and installation cost $2.000 and the residual...
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and...
SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year, 95,000 units were produced. In the second year, production increased to 111,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Multiple Choice $49,440 $22,800 $26,640 $36,000 Factor(s) that might...
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A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 750,000 bolts of woven fabr...
A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 750,000 bolts of woven fabric over its useful life. In the first year, 105,000 bolts were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
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A company purchased a weaving machine for $273,400. The machine has a useful life of 8...
A company purchased a weaving machine for $273,400. The machine has a useful life of 8 years and a residual value of $15,000. It is estimated that the machine could produce 760,000 bolts of woven fabric over its useful life. In the first year, 110,000 bolts were produced. In the second year, production increased to 114,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year? Multiple Choice $41,010 $39,571....
A machine with a cost of $71,916.00 has an estimated residual value of $4,607.00 and an...
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Production method, the machine cost $8,250 and the residual is $750. A step machine has an...
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QUESTION 2 A machine with a cost of $65,000 has an estimated residual value of $5,000...
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Accounts receivable turnover measures * How long it takes to sell inventory on credit How often a company converts its average accounts receivable balance into cash during the period Measures the relationship of cash sales to credit sales How long it takes to sell inventory on credit and how often a company converts its average accounts receivable balance into cash during the period How often a company converts its average accounts receivable balance into cash during the period and measures...
During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is 2 points used to account for bad debts? O No effect on net income or on total assets O Decrease in net income; no effect on total assets O Decrease in net income; decrease in total assets O...
A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the book value of the machine at the end of the second year? Multiple Choice $108,400. $144,400....
A company purchased a weaving machine for $273,400. The machine has a useful life of 8 years and a residual value of $15,000. It is estimated that the machine could produce 760,000 bolts of woven fabric over its useful life. In the first year, 110,000 bolts were produced. In the second year, production increased to 114,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year? Multiple Choice $41,010 $39,571....
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QUESTION 2 A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for a second full year, during which the machine was used 5,000 hours? O $8,000 O$20,000 $12,000 O $21.667
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