I need help please answering these question parts. I tried, but it looks hard fo

Question

I need help please answering these question parts. I tried, but it looks hard for me, help me. ( please: type the answers up, so it becomes more clear for me) At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different each was recorded separately in the accounts. Machine A Machine B Machine C Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $7,750 $25,900 $9,600 650 1,450 400 350 1,800 430 750 1,350 380 By the end of the first year, each machine had been operating 4,000 hours. Required: 1. Compute the cost of each machine Cost of Machine Machine A Machine B Machine C

Explanation / Answer

Solution 1:

Solution 2:

Depreciation expense:

Machine A = ($9,900 - $400) / 5 =$1,900

Machine B = ($28,000-$1,000) * 4000 / 30000 = $3,600

Machine C:

Depreciation rate - SLM = 1/6 = 16.6666%

Depreciation rate - DDB = 2*16.66666% = 33.33333%

Depreciation for year 1 = $11,700 * 33.33333% = $3,900

Computation of Cost of Each machine - Young company Particulars Machine A Machine B Machine C Cost of asset $7,750.00 $25,900.00 $9,600.00 Installation cost $350.00 $750.00 $650.00 Renovation cost prior to use $1,800.00 $1,350.00 $1,450.00 Total cost to be capitalized $9,900.00 $28,000.00 $11,700.00

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