Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine that produces cellphone components is purchased on January 1, 2020, for $103.000. It is expected to have a useful life of four years

image text in transcribedimage text in transcribed

A machine that produces cellphone components is purchased on January 1, 2020, for $103.000. It is expected to have a useful life of four years and a residual value of $10,000. The machine is expected to produce a total of 200.000 components during its life, distributed as follows: 40.000 in 2020.50.000 in 2021,60,000 in 2022 and 50,000 in 2023. The company has a December 31 year end. Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line method Straight-line method depreciation $ per year ii. Units-of-production method (Round depreciation per unit to 2 decimal places, eg. 15.25 and final answer to decimal places, es. 125) Units-of-production method depreciation $ per unit Year 2020 $ 2021 $ 2022 $ 2023 $ mi. Double-diminishing-balance method % Rate Year 2020 $ 2021 $ 2022 $ 2023 $ Which method results in the highest depreciation expense: i during the first two years? ii. over all four years? ete Straight-line Units-of-production Double-diminishing-balance All are the same

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

In bargaining, does it really matter who makes the first offer?

Answered: 1 week ago