A machine that cost $475,500, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of product during its life. It actually produced the following units: 2020, 21,000; 2021, 128,500; 2022, 125,000; 2023, 108,300; and 2024, 102,200. The company’s year-end is December 31. Required: Show the depreciation for each year and the total depreciation for the machine under each depreciation method calculated to the nearest whole month. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
A machine that cost $475,500, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of product during its life. It actually produced the following units: 2020, 21,000; 2021, 128,500; 2022, 125,000; 2023, 108,300; and 2024, 102,200. The company’s year-end is December 31. Required: Show the depreciation for each year and the total depreciation for the machine under each depreciation method calculated to the nearest whole month. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 3MCQ
Related questions
Question
A machine that cost $475,500, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of product during its life. It actually produced the following units: 2020, 21,000; 2021, 128,500; 2022, 125,000; 2023, 108,300; and 2024, 102,200. The company’s year-end is December 31.
Required:
Show the
Transcribed Image Text:Units-of-
Double-Declining
Balance
Year
Straight-line
production
2020
2021
2022
2023
2024
Totals
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning