ezto.mh com CH 9 Solar Innovations Corporation bought a machine at the of the ye

Question

ezto.mh com CH 9 Solar Innovations Corporation bought a machine at the of the year at a cost of $23,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated 4,000 units; year 3, 3,000 units; year 4, 3,000 units; and year 5, 2,000 units. Required: of the machine is 15,000 units. Expected annual production was year 1, 3,000 units; year 2, 1. Complete a depreciation schedule for each of the altemative methods. (Do not round intermediate calculations.) a. Straight-line. Statement Balance Sheet Depreciation Accumulated Book Value At acquisition b. Units-of-production. In Statement come Balance Sheet Depreciation Accumulated Depreciation Book Value Year Expense

Explanation / Answer

1 a) Straight line Balance sheet year Depreciation cost Accumulated Book value expense dep at acquistion 23,000 1 4200 23,000 4,200 18800 2 4,200 23,000 8400 14600 3 4,200 23,000 12600 10400 4 4,200 23,000 16800 6200 5 4,200 23,000 21000 2,000 (depreciation = (23000-2000)/5 4200 b) Balance sheet year Depreciation cost Accumulated Book value expense dep at acquistion 23,000 1 4200 23,000 4,200 18800 2 5600 23,000 9800 13200 3 4200 23,000 14000 9000 4 4200 23,000 18200 4800 5 2800 23,000 21000 2,000 depreciation = (23000-2000)/15000 1.4 c) Balance sheet year Depreciation cost Accumulated Book value expense dep at acquistion 23,000 1 9200 23,000 9,200 13800 2 5520 23,000 14720 8280 3 3312 23,000 18032 4968 4 1987 23,000 20019 2981 5 981 23,000 21000 2,000 Rate = 1/5*2 0.4 40%

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.