Could you please help me solve the accounting below? Please see the attached fil

Question

Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and solutions. Thank you very much!

Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $660,000. The estimated residual value was $52,800. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 264,000 units. Actual annual production was as follows: Year Units 1 77,000 2 66,000 3 29,000 4 57,000 5 35,000 Required 1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round your intermediate calculations.) a. Straight-line. Depreciation Accumulated Expense Depreciatio Net Book Value Year At acquisition

Explanation / Answer

Straight line method of depreciation Depreciation per year = (Cost - Residual Life) / Useful Life = (660000 - 52800) / 5 121440 Year Depreciation Expense Accumulated Depreciation Net book value At acquisition 1 = (660000 - 52800) / 5 =660000-121440 121440 121440 538560 2 = (660000 - 52800) / 5 =660000-242880 121440 242880 417120 3 = (660000 - 52800) / 5 =660000-364320 121440 364320 295680 4 = (660000 - 52800) / 5 =660000-485760 121440 485760 174240 5 = (660000 - 52800) / 5 =660000-607200 121440 607200 52800 Units of production method of depreciation Depreciation per year = (No. of units produced / life in No. of units) * (Cost - salvage value) Year Depreciation Expense Accumulated Depreciation Net book value At acquisition 1 = (77000 / 264000) * (660000 - 52800) =660000-177100 177100 177100 482900 2 = (66000 / 264000) * (660000 - 52800) =660000-328900 151800 328900 331100 3 = (29000 / 264000) * (660000 - 52800) =660000-395600 66700 395600 264400 4 = (57000 / 264000 ) * (660000 - 52800) =660000-526700 131100 526700 133300 5 = (35000 / 264000) * (660000 - 52800) =660000-607200 80500 607200 52800 Double declining Balance method of depreciation Depreciation per year = 2 * straight line depreciation percent * book value at beginning of period Straight line depreciation percent = 100 / 5 = 20% Year Depreciation Expense Accumulated Depreciation Net book value At acquisition 1 = 2 * 20% * 660000 = 660000-264000 264000 264000 396000 2 = 2 * 20% * 396000 = 660000-422400 158400 422400 237600 3 = 2* 20% * 237600 = 660000 - 517440 95040 517440 142560 4 = 2 * 20% * 142560 = 660000 - 574464 57024 574464 85536 5 = 2* 20% * 85536 = 660000 - 608678.4 34214.4 608678.4 51321.6

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