Solar Innovations Corporation bought a machine at the beginning of the year at a
ID: 2563652 • Letter: S
Question
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $32,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,100 units; year 2, 3,100 units; year 3, 2,100 units; year 4, 2,100 units; and year 5, 600 units.
Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $32,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,100 units; year 2, 3,100 units; year 3, 2,100 units; year 4, 2,100 units; and year 5, 600 units.
Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $32,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,100 units; year 2, 3,100 units; year 3, 2,100 units, year 4, 2,100 units; and year 5, 600 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) a. Straight-line. Balance Sheet Statement Depreciation Expense Accumulated Book Value Depreciation Cost At acquisition b. Units-of-production. Balance Sheet Statement Depreciation Expense Accumulated Depreciation Book Value Year Cost At acquisitionExplanation / Answer
a) Straight line depreciation = (32,000-4,000)/5 5600 Year Depreciation cost Accumulated Book Acquistion expense depreciation Value 32,000 1 5,600 32,000 5,600 26,400 2 5,600 26,400 11200 20800 3 5,600 20,800 16800 15200 4 5,600 15,200 22400 9600 5 5,600 9,600 28000 4000 b) Units of production = (32,000-4,000)/10,000 2.8 Depreciation cost Accumulated Book Acquistion expense depreciation Value 32,000 1 5,880 32,000 5,880 26,120 2 8,680 26,120 14560 17440 3 5,880 17,440 20440 11560 4 5,880 11,560 26320 5680 5 1,680 5,680 4000 4000 c) Depreciation cost Accumulated Book Acquistion expense depreciation Value 32,000 1 12,800 32,000 12,800 19,200 2 7,680 19,200 20,480 11,520 3 4,608 11,520 25,088 6,912 4 2,765 6,912 27853 4,147 5 147 4,147 28000 4000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.