Question. A schedule of machinery owned by Micco Co. is presented below:Total costSalvage valueLife in yearsMachine XMachine YMachine Z2. 10.0Micco computes depreciation by the composite method.The composite life (in years) for these assets is1. 15.63. 8.9600,000800,000300,0004. 8.640,00080,00060,00014106

Introduction: Depreciation is an accounting technique that assigns the cost of a measurable or…

Question. A schedule of machinery owned by Micco Co. is presented below: Total cost Salvage value Life in years Machine X Machine Y Machine Z 600,000 800,000 300,000 3. 8.9 40,000 80,000 60,000 Micco computes depreciation by the composite method. The composite life (in years) for these assets is 1. 15.6 2. 10.0 14 10 6

Question. A schedule of machinery owned by Micco Co. is presented below: Total cost Salvage value Life in years Machine X Machine Y Machine Z 600,000 800,000 300,000 3. 8.9 40,000 80,000 60,000 Micco computes depreciation by the composite method. The composite life (in years) for these assets is 1. 15.6 2. 10.0 14 10 6

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 81.1C: Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of...

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Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: With regard to depreciation methods: a. What depreciation method does Under Armour use? What depreciation method does Columbia use? b. What are the typical useful lives of each companys operating assets? c. What effect will the useful lives have on the companys financial statements?
Sebastian Company provided the following data pertaining to the total cost, residual value, and estimated life, respectively, of its machinery: Machinery A – 5,500,000; 500,000; 20 Machinery B – 2,000,000; 200,000; 15 Machinery C – 400,000; 0; 5 Sebastian computes depreciation on the straight line method. I What is the composite life of the assets? 13.3 16.0 18.0 19.8 II.. What is the composite rate of the assets? 5.70 6.18 6.25 6.78 III. What is the periodic depreciation of the assets? 450,300 488,220 493,750 535,620
At the start of its business, Snell Corp. decided to use the composite method of depreciation and prepared the following schedule of machinery owned. Total cost Residual value Useful life Machine A 275,000 25,000 20 Machine B 100,000 10,000 15 Machine C 20,000 - 5 Snell computes depreciation on the straight-line method. Based on the information presented, the composite life of these assets (in years) should be 3 c. 18.0 0 d. 19.8
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).
The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company. Estimated Estimated Total Salvage Life in Cost Value Years Machine A P 600,000 P110,000 20 Machine B 315,000 30,000 10 Machine C 84,000 0 15 Machine D 107,000 7,000 5 P1,106,000 PERSEVERANCE computes depreciation on a straight-line basis. Based on the information presented, compute the: (1) Composite life of these assets (in years). (2) Composite depreciation rate.
Assume the following PPE: Cost Residual Value Est. Useful Life (years) Building 10,000,000 500,000 20 Machinery 5,000,000 200,000 10 Delivery Equipment 2,000,000 200,000 5 Office Equipment 400,000 - 5 14. Using composite method, compute the composite life in years. Round off to two decimal places. Ex: 12.3415. Compute the composite depreciation rate. Round off to two decimal places. Ex.:12.34%16. How much is the annual depreciation as per table?17. Give the entry to record sale of delivery equipment at the end of the 4th year for P70,000.18. How much is the depreciation for the 5th year? (Use the rounded off rate)19. How much is the depreciation for the 5th year assuming a new delivery equipment is purchased for P2,200,000 at the beginning of the 5th year? (Use the rounded off rate) NOTE: SUBPARTS 17-19 ONLY
Assume the following PPE: Cost Residual Value Est. Useful Life (years) Building 10,000,000 500,000 20 Machinery 5,000,000 200,000 10 Delivery Equipment 2,000,000 200,000 5 Office Equipment 400,000 - 5 14. Using composite method, compute the composite life in years. Round off to two decimal places. Ex: 12.3415. Compute the composite depreciation rate. Round off to two decimal places. Ex.:12.34%16. How much is the annual depreciation as per table?17. Give the entry to record sale of delivery equipment at the end of the 4th year for P70,000.18. How much is the depreciation for the 5th year? (Use the rounded off rate)19. How much is the depreciation for the 5th year assuming a new delivery equipment is purchased for P2,200,000 at the beginning of the 5th year? (Use the rounded off rate)
Presented below is information related to Novak Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $44,900 $6,200 10 B 33,200 4,400 9 C 35,700 3,300 9 D 19,800 2,300 7 E 24,500 3,200 6 (a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate enter the composite rate in percentages rounded to 2 decimal places %
Presented below is information related to Waterway Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $53,800 $6,100 10 B 32,200 5,200 9 C 36,500 4,100 9 D 19,000 1,500 7 E 24,000 3,300 6 (a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate enter the composite rate in percentages rounded to 2 decimal places %
Lavender Company provided the following data related to a machinery on the date of revaluation: Cost Replacement Cost Machinery 9,000,000 15,000,000 Accumulated depreciation 3,600,000 Life in years 25 years What is the journal entry to record the first piecemeal realization of the revaluation surplus?
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).
The company has the following data of the non-current assets. Asset Original Cost Residual Value Estimated Life Depreciation Method Machine A (purchased on 1 Jan. 2017 $32,000 $4,000 5 years Straight-line Machine B (purchased on 1 Jan. 2021) 36,000 3,500 5 years Double-declining balance Machine C (purchased on 1 Jan. 2019) 52,000 4,000 5 years Double-declining balance Machine D (purchased on 1 Jan. 2018) 360,000 96,000 5 years Unit-of-Production method Additional information: For machinery D estimated units produced is 120,000 unit, Machine D is used to produce 40,000, 25,000, 35,000 units in the first, second, and third year respectively, it is used to produce 5,000 units during 1 Jan 21 to 31 Mar 21 1 Apr. 21 the company sold Machine A (purchased on 1 Jan. 2017) for $12,000 cash, Machine B (purchased on 1 Jan. 2021) for $ 25,000, and Machine C (purchased on 1 Jan. 2019) for $24,000 And 1 Apr. 21…