Complete the following table given this information: (Do not round intermediate calculations.) $ 94,000 $ 4,000 5 years Cost of machine Residual value Useful life Estimated units machine will produce Actual production: 100,000 Year 1 Year 2 60,000 15,000 Use MACRS table. Depreciation Expense Method Year 1 Year 2 Straight line Units of production Declining balance MACRS (5-year class)

Complete the following table given this information: (Do not round intermediate calculations.) $ 94,000 $ 4,000 5 years Cost of machine Residual value Useful life Estimated units machine will produce Actual production: 100,000 Year 1 Year 2 60,000 15,000 Use MACRS table. Depreciation Expense Method Year 1 Year 2 Straight line Units of production Declining balance MACRS (5-year class)

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterA: Methods Of Depreciation

Section: Chapter Questions

Problem 2P: Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to...

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A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.
Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles). Required Prepare a schedule of depreciation using the units-of-production method. Check Figure Year 3 depreciation, 3,200 PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000.
Complete the following table given this information: (Do not round intermediate calculations.) Cost of machine $ 94,000 Residual value $ 4,000 Useful life 5 years Estimated units machine will produce 100,000 Actual production: Year 1 Year 2 60,000 15,000 Depreciation Expense Method Year 1 Year 2 Straight line Units of production Declining balance MACRS (5-year class)
The equipment of DEF Company has the following data:Cost 1,100,000Salvage value 100,000Useful life 4 years20,000 units10,000 hoursDate acquired 01/01/x1Required: Determine the depreciation expense in 20x1 under the following methods:1. Sum-of-the-years’ digits method.2. Double declining balance method.3. Units of input method (DEF used 3,000 working hours for the product it manufactured for the year 20x1).4. Units of output method (DEF used 2,000 units of the product for the year 20x1).
Complete the following table given this information: (Do not round intermediate calculations.) Cost of machine $ 89,200 Residual value $ 3,200 Useful life 5 years Estimated units machine will produce 100,000 Actual production: Year 1 Year 2 52,000 12,500 Use MACRS table. Depreciation Expense Method Year 1 Year 2 Straight line $17,200 $17,200 Units of production Declining balance MACRS (5-year class)
The equipment of DEF Company has the following data:Cost 1,100,000Salvage value 100,000Useful life 4 years20,000 units10,000 hoursDate acquired 01/01/x1Required: Determine the depreciation expense in 20x1 under the following methods:1. Units of output method (DEF used 2,000 units of the product for the year 20x1).