At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Expense Net Book Value Depreciation Required A Required B Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000
At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Accumulated Expense Net Book Value Depreciation Required A Required B Year Acquisition Cost 2020 2021 2022 2023 $ $ $ $ 34,400 $ 27,256 $ 19,504 $ 11,448 $ 7,144 $ 7,752 $ 8,056 $ 7,448 $ 27,256 19,504 11,448 4,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...
Related questions
Question
Please help ()()))())
Need net book value for both please
Transcribed Image Text:At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000
units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023.
Required:
a. Determine the depreciable cost.
b. Calculate the depreciation expense per year under the straight-line method.
c. Use the straight-line method to prepare a depreciation schedule.
d. Calculate the depreciation rate per unit under the units-of-production method.
e. Use the units-of-production method to prepare a depreciation schedule.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C Required D Required E
Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.)
Depreciation Accumulated Net Book
Expense
Depreciation
Value
Year
Acquisition Cost
2020
2021
2022
2023
$
$
$
$
34,400 $
27,256 $
19,504 $
11,448 $
7,144 $
7,752 $
8,056 $
7,448 $
27,256
19,504
11,448
4,000
Transcribed Image Text:At the beginning of 2020, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000
units in 2020, 51,000 units in 2021, 53,000 units in 2022, and 49,000 units in 2023.
Required:
a. Determine the depreciable cost.
b. Calculate the depreciation expense per year under the straight-line method.
c. Use the straight-line method to prepare a depreciation schedule.
d. Calculate the depreciation rate per unit under the units-of-production method.
e. Use the units-of-production method to prepare a depreciation schedule.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C Required D Required E
Use the straight-line method to prepare a depreciation schedule.
Depreciation Accumulated Net Book
Expense Depreciation
Value
Year
Acquisition Cost
2020
2021
2022
2023
$
$
$
$
34,400 $
26,800 $
19,200 $
11,600 $
7,600 $
7,600 $
7,600 $
7,600 $
26,800
19,200
11,600
4,000
11
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College