Q2 Cheezie Fried Chicken bought equipment on January 2, 2019, for RM21,000. The equipment was expected to remain in service for four years and to perform 3,600 fry jobs. At the end of the equipment's useful life, Cheezie estimates that its residual value will be RM3,000. The equipment performed 360 jobs the first year, 1,080 the second year, 1,440 the third, and 720 the fourth year. Based on the information above : (a) Prepare the depreciation schedule using: (i) (ii) (iii) Double-declining balance method Straight line method Units-of-production method

Q2 Cheezie Fried Chicken bought equipment on January 2, 2019, for RM21,000. The equipment was expected to remain in service for four years and to perform 3,600 fry jobs. At the end of the equipment's useful life, Cheezie estimates that its residual value will be RM3,000. The equipment performed 360 jobs the first year, 1,080 the second year, 1,440 the third, and 720 the fourth year. Based on the information above : (a) Prepare the depreciation schedule using: (i) (ii) (iii) Double-declining balance method Straight line method Units-of-production method

Name: Q2 Q2Cheezie Fried Chicken bought equipment on January 2, 2019, for RM
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Description: Q2 Q2Cheezie Fried Chicken bought equipment on January 2, 2019, for RM21,000. Theequipment was expected to remain in service for four years and to perform 3,600 fry jobs.At the end of the equipment's useful life, Cheezie estimates that its residual v

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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Ivanhoe Ltd. purchased a new machine on April 4, 2017, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,750 working hours during its four-year life. Actual machine usage was 1,600 hours in 2017; 2,100 hours in 2018; 2,300 hours in 2019; 2,100 hours in 2020; and 1,700 hours in 2021. Ivanhoe has a December 31 year end. Calculate depreciation for the machine under each of the following methods: Round expense per unit to 2 decimal places(1) Straight-line for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense $enter a dollar amount 2020 expense $enter a dollar amount 2021 expense $enter a dollar amount (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense…
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Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000 , what would be the effect on the following under the straight-line, sum-of-the-years'-digits, and double-declining-balance depreciation methods? Depreciation expense Straight-line method 2019 $ fill in the blank 21 2020 $ fill in the blank 22 Sum-of-the-years'-digits method 2019 $ fill in the blank 23 2020 $ fill in the blank 24 Double-declining-balance method 2019 $ fill in the blank 25 2020 $ fill in the blank 26 Book value Straight-line method 2019 $ fill in…