Comfort Corporation is a company that manufactures and sells chairs. On 1/1/21, the company purchases a piece of manufacturing equipment for $6,200,000 cash. The expected residual value is $400,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2021; 1,400,000 chairs in 2022; 1,000,000 chairs in 2023; and 600,000 chairs 2024; and 800,000 chairs in 2025. SHOW YOUR WORK! Round per unit to the nearest cent. Assume that Comfort Corporation uses the Straight-Line method of depreciation. 2021 2022 2023 2024 2025 Depreciation Expense for the year Accumulated Depreciation at year-end PPE, Net on year-end Balance Sheet Assume that Comfort Corporation uses the Units-of-Activity method of depreciation. 2021 2022 2023 2024 2025 Depreciation Expense for the year Accumulated Depreciation at year-end PPE, Net on year-end Balance Sheet Assume that Comfort Corporation uses the Double-Declining-Balance method of depreciation. 2021 2022 2023 2024 2025 Depreciation Expense for the year Accumulated Depreciation at year-end PPE, Net on year-end Balance Sheet
Comfort Corporation is a company that manufactures and sells chairs. On 1/1/21, the company purchases a piece of manufacturing equipment for $6,200,000 cash. The expected residual value is $400,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment – 1,200,000 chairs in 2021; 1,400,000 chairs in 2022; 1,000,000 chairs in 2023; and 600,000 chairs 2024; and 800,000 chairs in 2025.
SHOW YOUR WORK! Round per unit to the nearest cent.
Assume that Comfort Corporation uses the Straight-Line method of
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Depreciation Expense for the year |
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Accumulated Depreciation at year-end |
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PPE, Net on year-end Balance Sheet |
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Assume that Comfort Corporation uses the Units-of-Activity method of depreciation.
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2021 |
2022 |
2023 |
2024 |
2025 |
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Depreciation Expense for the year |
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Accumulated Depreciation at year-end |
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PPE, Net on year-end Balance Sheet |
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Assume that Comfort Corporation uses the Double-Declining-Balance method of depreciation.
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2021 |
2022 |
2023 |
2024 |
2025 |
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Depreciation Expense for the year |
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Accumulated Depreciation at year-end |
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PPE, Net on year-end Balance Sheet |
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