Question

Minor $135.000. The Company installs a machine in its factory at the beginning of the year at a cost of The machine's useful life is estimated to be 5 years, or 300,000 units of product, with 000 salvage value. During its first year, the machine produces 64,500 units of product Sermine the machines first year depreciation expense under the double-declining balance at the $15.000 salvage irst year's first yeated to method. A) S66,000. B) $54,000. C) $24.000, D) $25,800. E) $48,000. 19) Minor Company installs a machine in its factory at the beginning of the year at a costo $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product Determine the machines' first year depreciation under the units-of-production method. A) $27.000. B) $54,000. C) $24,000. D) $25,800. E) $48,000. 20) Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? A) Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800. B) Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025. C) Debit Depreciation Expense S29,025: credit Accumulated Depreciation $29,025. D) Debit Depreciation Expense S25.800: credit Accumulated Depreciation $25,800. E) Debit Amortization Expense S24,000: credit Accumulated Amortization $24,000.

Answer 1

118 cost of the machine - $ 135000 Useful life - 5 years Depreciation rate = 1 Usefu x 2 x 100 I first =4001 - year depreciation - DDB method sooo x 40 l $54000 19 Depreciation method cender units production Depreciation/onit a cost of machin = cost of the machine - salvage value Estimated production D - $ 135000 – $ 15000 3,00.000 units T & o.4 year production - 64,500 units first first year depreciation a $ 0.4 X 64,500 = $ 251800

Journal entry bepreciation expense a cdr $25800 TO Accumulated deprecational $25800 (Being depreciation provided on machinery an the first year cender units | production method)