Question
M8-13. Computing Depreciation Under Alternative MethodsEquipment costing $130,000 is expected to have a residual value of...
M8-13. Computing Depreciation Under Alternative MethodsEquipment costing $130,000 is expected to have a residual value of $10,000 at the end of its six-year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process 1,000,000 units in its lifetime. In 2019 and 2020, the equipment processed 180,000 units and 140,000 units respectively. Calculate the depreciation expense for 2019 and 2020 using each of the following methods:a. Straight-lineb. Double-declining-balancec. Units of productio
Answers
Straight line Method Cost of Equipment $ 130,000 Less: Salvage value $ (10,000) Depreciable value $ 120,000 Life of Equipment 6 Years Depreciation per year ($120,000/6) $ 20,000 Depreciation for 2019 $ 20,000 Depreciation for 2020 $ 20,000
Depreciation under DDB Method Year - a Net Book value, beginning of year - b Double declained depreciation - c = b/Life of assets*2 Net book value, End of the year - d = b-c 2019 $ 130,000 $ 43,333.33 $ 86,666.67 2020 $ 86,667 $ 28,888.89 $ 57,777.78
Activity Based Method Units of output Cost of Equipment $ 130,000 Less: Salvage value $ (10,000) Depreciable value $ 120,000 Total expected production 1,000,000 Depreciation per unit ($120,000/1,000,000) $ 0.12 Depreciation for 2019 (180,000*$0.12) $ 21,600 Depreciation for 2020 (140,000*$0.12) $ 16,800 You can reach me over comment box if you have any doubts. Please rate this answer
Similar Solved Questions
1 answers
What happens to the states of matter in the halogen group?
What happens to the states of matter in the halogen group?...
1 answers
Which of the following statements regarding job-order costing and process costing is FALSE? Multiple Choice Job-order...
Which of the following statements regarding job-order costing and process costing is FALSE? Multiple Choice Job-order costing uses manufacturing overhead; process costing does not apply manufacturing overhead. Both systems have the same basic purposes-assigning costs to products. The flow of costs t...
1 answers
Business decision making by seeing the financial statement textbook: financial accounting
On October 1, 2009, Jack Company issued a $5,000, 6%, bond payable. The interest is payable annually each October 1 and the bond matures in five years. The annualaccounting period for the company ends December 31. Complete the following chart and at the bottom, indicate if the bond sold at part or f...
1 answers
Consider the mineral anhydrite: CaSO4(s) Ca+2 + SO4-2 What is the solubility of anhydrite in pure...
Consider the mineral anhydrite: CaSO4(s) Ca+2 + SO4-2 What is the solubility of anhydrite in pure water at 25o C?...
1 answers
A used car dealer says that the mean price of a three-year-old sports utility vehicle is...
A used car dealer says that the mean price of a three-year-old sports utility vehicle is $20,000. You suspect this claim is incorrect and find that a random sample of 22 similar vehicles has a mean price of $20,674 and a standard deviation of $1943. Is there enough evidence to reject the claim at a ...
1 answers
7-On January 1, GV Company adopted the 1 was $112,000. On December 31, endu year was...
7-On January 1, GV Company adopted the 1 was $112,000. On December 31, endu year was 1.05 company adopted the dollar-value LIFO method. The inventory cost on January ,00. On December 31, ending inventory had a cost of $136,400. The cost de • For what amount would ending inventory be reported &b...
1 answers
Practice Problem 10.27 When isopropylbenzene (cumene) is treated with NBS and irradiated with UV light, only...
Practice Problem 10.27 When isopropylbenzene (cumene) is treated with NBS and irradiated with UV light, only one product is obtained. Propose a mechanism and explain why only one product is formed. Step 2 Get help answering Molecular Drawing questions. X Incorrect. Identify the hydrogen atom that wo...
1 answers
Georgia, a widow, has take home pay of $1400 a week from her part-time job. Her...
Georgia, a widow, has take-home pay of $1400 a week from her part-time job. Her disability Insurance coverage replaces 60 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits If an illness kept Georgia off work for 15 weeks? (Do not round int...
1 answers
On a summer evening has probably heard crikckets. Did you know that it is possible to use the cri...
on a summer evening has probably heard crikckets. Did you know that it is possible to use the cricket as a thermometer? Crickets tend to chirp more frequently as temperatures increase. This representing chirps per second and y is a random variable re i George W. Pierce, a physics professor at Harvar...
1 answers
Determine the concentration of nitrate ions after 126.0 mL of 0.121 M solution of Cu(NO3)2 and 193.0 mL of 0.215 M solut...
Determine the concentration of nitrate ions after 126.0 mL of 0.121 M solution of Cu(NO3)2 and 193.0 mL of 0.215 M solution of Fe(NO3)3 are mixed together. Assume that volumes are additive....
1 answers
Consider baseband modulation, with each bit of duration Th. The pulse shape is p(t) = II(t/Tb)....
Consider baseband modulation, with each bit of duration Th. The pulse shape is p(t) = II(t/Tb). The PSDs for the bipolar, on-off, and polar signaling are shown in the figure below. Identify what curve (labeled a -c) corresponds what line code. 1 0.9 0.8 0.7 (a) 0.6 Amplitude 0.5 0.4 0.3 0.2 0.1 0 -2...
1 answers
Hunt Taxidermy, Inc. is concerned about the taxes paid by the company in 2018. In addition...
Hunt Taxidermy, Inc. is concerned about the taxes paid by the company in 2018. In addition to $7.5 million of taxable income, the firm received $614,000 of interest on state-issued bonds and $340,000 of dividends on common stock it owns in Oakdale Fashions, Inc. (Use Table 2.3.) Calculate Tax Liabil...