Question 9 Flint Company p chased achr ery for S1 76,400 on January 1 2017. It i

Question

Question 9 Flint Company p chased achr ery for S1 76,400 on January 1 2017. It is estimated that the machinery 37,800. During 2017, the company uses the machinery for 13,230 hours, and the machinery digits, and double-deckning-balance methods. ( I have a ful le of 20 y ars, selage vlie of SI·700, produ ton on soo nits, a d i ring he rs of ) produces 16,160 units. Compute depreciation under the straight line, units-of-output, working hours, sum-of-the-years Round intermediate cakulations to S decanal places, e?LS6487 and final answers to 0 decimal padec e+ S is , 125) Straight-line Units of output Working hours Sum- of the years digits Double declining balance Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 7used

Explanation / Answer

Straight Line Method Dep Depreciation as per SLM mthod = (Cost of the machine - residual Value)/useful life =[176400-14700]/20yrs =$ 8085 Unit of production Depreciation cost = (Cost of the machine - residual Value)/total no of units in 20 year =[176400-14700]/80800 units $2.00124 /unit Deprciation for year 1 = depreciation per unit * total no of unit produced in yr 1 =$2.00124*16160 units $32,340 Working Hrs Depreciation cost = (Cost of the machine - residual Value)/total hrs worked in 20 year =[176400-14700]/37800 hrs $4.27778/hr Deprciation for year 1 = depreciation per hr * total no of hrs worked in yr 1 $4.27778/hr*13230 hrs $56,595 Double Declining balance method Depreciation factor is equal to 2 since it is double declining Dep rate using SLM =100%/useful life = 100%/20 = 5% Depreciation Rate = Depreciation Factor x Straight-Line Depreciation Percent =2*5% = 10% Depreciation for a Period = Depreciation Rate x Book Value at Beginning of the Period =10%*176400 = $17640 Sum of years digit formula Sum of all the years = n(n+1)/2 =20(20+1)/2 = 210 Depreciation for year 1 = Purchase Cost - Salvage Value * 1/sum of useful lyf =[176400-14700]*20/210 =$15400

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