On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $864,000. T
ID: 2498522 • Letter: O
Question
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $44,000 estimated salvage value. Flippy-Floppy expects to manufacture 1,800,000 units over the life of the machine.
Required: Complete the required depreciation schedules on the manufacturing machine for each method listed. The additional production information is as follows:
Year Production
2014 110,000
2015 300,000
2016 350,000
2017 350,000
2018 500,000
2019 450,000
2020 375,000
2021 400,000
Schedules for:
a. Straight-line.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
2015
2016
b. Double-declining balance.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
2015
2016
2017
2018
2019
2020
2021
2022
c.Sum -of-the-years' digits.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
2015
2016
2017
2018
2019
2020
2021
2022
d. Units of production.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
2015
2016
2017
2018
2019
2020
2021
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
2015
2016
Explanation / Answer
Ans:
Schedules for:
a. Straight-line.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
59,791.67
59,791.67
7,60,208.33
2015
1,02,500.00
1,62,291.67
6,57,708.33
2016
1,02,500.00
2,64,791.67
5,55,208.33
b. Double-declining balance.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
1,26,000.00
1,26,000.00
6,94,000.00
2015
1,84,500.00
3,10,500.00
5,09,500.00
2016
1,38,375.00
4,48,875.00
3,71,125.00
2017
1,03,781.25
5,52,656.25
2,67,343.75
2018
77,835.94
6,30,492.19
1,89,507.81
2019
58,376.95
6,88,869.14
1,31,130.86
2020
43,782.71
7,32,651.85
87,348.15
2021
32,837.04
7,65,488.89
54,511.11
2022
10,261.57
7,75,750.46
44,249.54
Sum-of-the-years' digits.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
1,06,296.30
1,06,296.30
7,13,703.70
2015
1,68,935.19
2,75,231.49
5,44,768.51
2016
1,46,157.41
4,21,388.90
3,98,611.10
2017
1,23,379.63
5,44,768.53
2,75,231.47
2018
1,00,601.85
6,45,370.38
1,74,629.62
2019
77,824.07
7,23,194.45
96,805.55
2020
55,046.30
7,78,240.75
41,759.25
2021
32,268.52
8,10,509.27
9,490.73
2022
9,490.74
8,20,000.00
-
Answer Sheet Page 2-of-5 Acct310 Final Exam
d. Units of production.
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
50,116.00
50,116.00
7,69,884.00
2015
1,36,680.00
1,86,796.00
6,33,204.00
2016
1,59,460.00
3,46,256.00
4,73,744.00
2017
1,59,460.00
5,05,716.00
3,14,284.00
2018
2,27,800.00
7,33,516.00
86,484.00
2019
86,484.00
8,20,000.00
-
2020
2021
Year
Depreciation Expense
Accumulated Depreciation
End of Year Book Value
2014
59,791.67
59,791.67
7,60,208.33
2015
1,02,500.00
1,62,291.67
6,57,708.33
2016
1,02,500.00
2,64,791.67
5,55,208.33
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