Hello! I need help with the following accounting question regarding the calculation of the amount of depreciation expenses calculated under the assumtpions attatched below. Thank you in advance! Calculate the amount of depreciation expense that Kingbird should record for Machine B each year of its useful life under thefollowing assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimalplaces, e.g. 2,125.)(1) Kingbird uses the straight-line method of depreciation.(2)Kingbird uses the declining-balance method. The rate used is twice the straight-line rate.(3)Kingbird uses the units-of-activity method and estimates that the useful life of the machine is 162,000 units. Actualusage is as follows: 2022, 60,500 units; 2023, 45,500 units; 2024, 30,500 units; and 2025, 25,500 units.$$2022tA$2023Depreciation ExpenseLA$2024$$2025 On January 1, 2022, Kingbird Company purchased the following two machines for use in its production process.Machine A:Machine B:The cash price of this machine was $40,000. Related expenditures also paid in cash included: sales tax $2,250,shipping costs $100, insurance during shipping $70, installation and testing costs $100, and $100 of oil andlubricants to be used with the machinery during its first year of operations. Kingbird estimates that the useful life ofthe machine is 5 years with a $4,400 salvage value remaining at the end of that time period. Assume that thestraight-line method of depreciation is used.The recorded cost of this machine was $180,000. Kingbird estimates that the useful life of the machine is 4 yearswith a $11,520 salvage value remaining at the end of that time period.

Name: Hello! I need help with the following accounting question regarding th
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Description: Hello! I need help with the following accounting question regarding the calculation of the amount of depreciation expenses calculated under the assumtpions attatched below. Thank you in advance! Calculate the amount of depreciation expense that Kingb

Depreciation is an expense recorded by the business entity for the wear and tear of the fixed assets…

Business

Accounting

Calculate the amount of depreciation expense that Kingbird should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimal places, e.g. 2,125.) (1) Kingbird uses the straight-line method of depreciation. (2) Kingbird uses the declining-balance method. The rate used is twice the straight-line rate. (3) Kingbird uses the units-of-activity method and estimates that the useful life of the machine is 162,000 units. Actual usage is as follows: 2022, 60,500 units; 2023, 45,500 units; 2024, 30,500 units; and 2025, 25,500 units.

Calculate the amount of depreciation expense that Kingbird should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimal places, e.g. 2,125.) (1) Kingbird uses the straight-line method of depreciation. (2) Kingbird uses the declining-balance method. The rate used is twice the straight-line rate. (3) Kingbird uses the units-of-activity method and estimates that the useful life of the machine is 162,000 units. Actual usage is as follows: 2022, 60,500 units; 2023, 45,500 units; 2024, 30,500 units; and 2025, 25,500 units.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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