2 of 6 View Policies Show Attempt History Current Attempt in Progress 7.67/20 E Crane Company purchased equipment on account on September 3, 2019, at an invoice price of $181,000. On September 4, 2019, it paid $3,800 for delivery of the equipment. A one-year, $1,900 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019. Crane paid $4,200 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019 Crane estimates that the equipment's useful life will be four years, with a residual value of $6,500. It also estimates that, in terms of activity, the equipment's useful life will be 91.250 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,410 2020 23,710 2021 20,010 2022 33,020 2023 Your answer is correct Determine the cost of the equipment. Cost of equipment 189000 Question 2 of 6 Your answer is correct Determine the cost of the equipment. Cost of equipment $ 189000 Your answer is partially correct Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to O decimal places, eg. 5.276) 1. STRAIGHT-LINE DEPRECIATION 7.67/20 Depreciable Depr. Depr Acc hup Question 2 of 6 < > (Round depreciable amount per unit to 2 decimal places, eg 5.27 and the final answers to Odecimal places, eg 5.276) 1.STRAIGHT-LINE DEPRECIATION 7.67/20 Depreciable Depr Year Amount Rate 2020 190900 2021 144800 Depr Expense 25 % 25 56 46100 46100 2022 98700 25 % 46100 2023 $2600 25 2.DOUBLE DIMINISHING-BALANCE DEPRECIATION Carrying Amount Year Beginning Of Year 2020 $ Depr Rate Depr. Expense 46100 2021 93430 30 * 20 N 5 #5430 47725 c 2022 47723 20 23563 [ 2003 23862 20 11921 [ 3. UNITS-OF-PRODUCTION Year 2000 Units of Production Depr Amt/Unit 2021 673420 23 Depr Expense 24628 Question 2 of 6 < > 7.67/20 2021 95450 50 47725 [ 2022 47725 50 23863 [ 2023 23863 50 11931 [ 3.UNITS-OF-PRODUCTION Year 2020 Units of Production 10900 2021 175420 Depr Amt/Unit 25 23 2022 127596 23 5 Depr Expense 21128 47894 40420 2023 17176 23 46700 Your answer is incorrect Which method would result in the highest profit for they des September 30, 20217 Over the life of the asset mathod would result in the highest profit for the year anded September 30 2021 Over the Last saved 55 sends ago Saved Attempts 1 of 2used Amer Question 2 of 6 View Policies Show Attempt History Current Attempt in Progress 7.67/20 E Crane Company purchased equipment on account on September 3, 2019, at an invoice price of $181,000. On September 4, 2019. it paid $3,800 for delivery of the equipment. A one-year, $1,900 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Crane paid $4,200 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019. Crane estimates that the equipment's useful life will be four years, with a residual value of $6,500. It also estimates that, in terms of activity, the equipment's useful life will be 91.250 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,410 2020 23,710 2021 20.010 2022 33,020 2023 Your answer is correct Determine the cost of the equipment. Cost of equipment S 189000 Question 2 of 6 > Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1 straight-line 2 double diminishing-balance 3. units-of-production 7.67/20 (Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to O decimal places, eg. 5,276) 1. STRAIGHT-LINE DEPRECIATION Year Depreciable Amount 2020 $ 2021 190900 144800 Depr Rate Depr Expense 25 96 46100 25 % 46100, 2022 98700 25 96 46100 2023 52600 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION Year Carrying Amount Beginning Of Year 25 46100 Depr Rate Depr. Expense S O Question 2 of 6 < > Prepare depreciation schedules for the life of the asset under the following depreciation methods: straight-line 2 double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to 0 decimal places, eg. 5,276) 1. STRAIGHT-LINE DEPRECIATION Depr Rate Depr. Expense 25 % 46100 7.67/20 End of Year Accum Depr. Carrying Amount 46100 $ 144800 25 % 46100 92200 98700 25 % 46100 138300 52600 25 % 46100 184400 6500 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION Year Carrying Amount Beginning Of Year Depr Rate Depr Expense Question 2 of 6 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION Year Carrying Amount Beginning Of Year 2020 2021 6 190900 95450 Depr X Rate Depr. Expense 50 % 95450 50 % 47725 2022 47725 50 %6 23863 2023 23863 50 3. UNITS-OF-PRODUCTION Units of Year Production 2020 Depr Amt/Unit 190900 $ 2021 175420 2022 [127598] 2023 87176 2.5 Depr Expense 31128 47894 25 40420 66700 11931 7.67/20 6 Question 2 of 6 < 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION Depr Rate 50 96 $ 50 96 Depr. Expense 95450 47725 S Accum. Depr. End of Year 95450 143175 SA 7.67/20 Carrying Amount 95450 47725 50 % 23863 167038 23863 50 96 11931 178969 11932 3. UNITS-OF-PRODUCTION Depr. Amt/Unit 25 23 End of Year Depr Expense Accum Depr Carrying Amount 31128 31128 6 47894 79022 159772 111878 25 40420 119442 71458 25 66700 186142 4758 Question 2 of 6 Depr Amt/Unit 25 25 7.67/20 E Accum End of Year Carrying Amount Depr Expense Depr 31128 $ 47894 2.5 40420 31128 79022 6 159772 111878 119442 71458 2.5 66700 186142 4758 Your answer is incorrect Which method would result in the highest profit for the year ended September 30, 20212 Over the life of the asset? All three methods method would result in the highest proft for the year ended September 30, 2021. Over the life Last saved 29 minutes ago Saved work will be auto-submitted on the due date Auto ubmission can take up to 20 minutes Attempts: 1 of 3 used Submit